Economics Question Please include all steps Thanks WG Enterp

Economics Question, Please include all steps. Thanks!

WG Enterprises Balance Sheet Current and Previous Year (in $ thousands) Previous Year Current Year Previous Year Current Year Liabilities and Owners Equity Current Liabilities Accounts Payable Notes Payable Total Assets Current Assets 401 544 355 1,300 322 206 528 366 232 598 as Inventory Accounts Rec 601 488 Total 1,644 Long-Term Debt 708 699 Fixed Assets PP&E; 1351 Equity 1,466 1,530 1,698 Total Assets Total Liabilities and Owners Equity 2,766 2,995 2,766 2,995 WG Enterprises Income Statement- Current Year (in $ thousands) Net Sales Cost of Goods Sold Depreciation Earnings Before Interest and Taxes Interest Paid Earnings Before Taxes Taxes NetIncome 1,418 684 679 71 608 213 395 Use the financial statements for WG Enterprises. What is the cash flow from financing?

Solution

Cash flows from Financing Activities: Repayment of long term debt -9 (708-699) Dividend paid -227 (1530+395-1698) Borrowing of Note payable 26 Net cash used in Financing activities -210 Note: It has been taken as increase in notes pyable is due to borrowing taken.