Problem:
Norris Company issued 10,000 shares of $1 par common stock for $25 per share during 2010. The company paid dividends of $24,000 and issued long-term notes payable of $220,000 during the year.
Required:
Question: What amount of cash flows from financing activities will be reported on the statement of cash flows?
- $6,000 net cash inflow
- $226,000 net cash inflow
- $470,000 net cash outflow
- $446,000 net cash inflow
Note: Be sure to show how you arrived at your answer.