The following changes occurred in accounts over the year: accounts payable increased by $6,000, bonds payable decreased by $12,000, common stock increased by $10,000, paid-in capital increased by $10,000, and retained earnings increased by $20,000. no dividends were paid during the year. what is the net cash flow from financing activities?
a. $(8,000)b. $22,000c. $20,000d. $8,000

d. $8,000

Explanation:

‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.

Net cash flow from financing activities section is shown below:

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits;