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Blair Madison Co. issues $1.9 million of new stock and pays $281,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.59 million in a new bond issue and paid off existing bonds with a face value of $2.45 million. The company bought 509 of another company's $1,090 bonds at a $109,000 premium. The net cash flow provided by financing activities is:

Respuesta :

Answer:

$759,000

Explanation:

Given that,

New stock issues = $1.9 million

Dividend paid in cash during the year = $281,000

The net cash flow provided by financing activities is:

= Million new stock issue increase in cash - Cash dividend decrease in cash + Increase in cash - Decrease in cash

= $1,900,000 - $281,000 + $1,590,000 - $2,450,000

= $759,000

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