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Based on the following information, what is the firm's cash flow from financing activities? Increase in accounts receivable $25 Increase in inventories $32 Operating income $75 Interest expense $24 Increase in accounts payable $20 Dividends $12 Increase in common stock $22 Increase in net fixed assets $24 Depreciation expense $11 Income taxes $15 Beginning cash $21

Finance Oct 27, 2020

Based on the following information, what is the firm's cash flow from financing activities? Increase in accounts receivable $25 Increase in inventories $32 Operating income $75 Interest expense $24 Increase in accounts payable $20 Dividends $12 Increase in common stock $22 Increase in net fixed assets $24 Depreciation expense $11 Income taxes $15 Beginning cash $21

Expert Solution

Cash flow from financing activities = Increase in common stock - Dividends

Increase in common stock = 22

Dividends paid = 12

=22 - 12

= $10

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