Financing Activities Video Lessons

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Problem: Borderline Corp. borrowed $1.2 million in short-term notes and $6.4 million in long-term notes. The company repaid $4.8 million of long-term notes plus $.6 million of interest. Borderline issued $8.7 million of common stock and paid a cash dividend of $1.2 million. Net cash flow from financing activities equals  A. $9.7 million net cash inflow. B. $10.3 million net cash inflow. C. $9.1 million net cash inflow. D. $7.9 million net cash inflow.

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Problem Details

Borderline Corp. borrowed $1.2 million in short-term notes and $6.4 million in long-term notes. The company repaid $4.8 million of long-term notes plus $.6 million of interest. Borderline issued $8.7 million of common stock and paid a cash dividend of $1.2 million.

Net cash flow from financing activities equals 

A. $9.7 million net cash inflow.

B. $10.3 million net cash inflow.

C. $9.1 million net cash inflow.

D. $7.9 million net cash inflow.

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