Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2021, the company begins operations by issuing stock for $11,000 and obtaining a loan from a local bank for $16,000. By the end of 2021, the company provides will preparation services of $23,000 cash and pays employee salaries of $14,000. In addition, Smith pays $1,100 in cash dividends to stockholders on December 31, 2021.

Required:

Determine the amount of financing cash flows Smith would report in 2012.

Financing cash flows will be as follows;

Explanation:

Stocks                        $11,000

Loan                          $16,000

Dividends paid            ($1,100)      

Cashflows from financing activities   $25,900  

The salaries paid and service revenues received are shown in operating activities, therefore they are not shown in financing activities of cash flow statement.

$25,900

Explanation:

The cash inflow and outflow occured due to borrowing or repaying

In this question the cash flow relates to the finances obtained by the company as follows;

Operational cost + Loan obtained - Dividend

$11,000 + $16,000 - $1,100 = $25,900

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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