Common stock transactions on the statement of cash flows
Jones Industries received $600,000 from issuing shares of its common stock and $400,000 from issuing bonds. During the year, Jones
Industries also paid dividends of $60,000. How are the effects of these transactions reported on the statement of cash flows? Use the
minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no
effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.
Transactions
Cash received from issuing common
stock
Cash received from issuing bonds
Cash paid for dividends
Feedback
Action
Part of cash flows from investing activities
X
No effect
X
Deducted from net income
X
Amount
$
$
$
?Check My Work
Recall the definitions of each section of the statement of cash flows. What type of activities arises from issuing long-term debt or
equity securities? Are the activities cash inflows or cash outflows?