Calculate and display cash from financing activities

Reference no: EM131007576

Lansing Inc., a profitable food products manufacturer, has undertaken a major expansion that will be financed by new debt and equity issues as well as earnings. During the last year the company borrowed $5 million for a term of 30 years to finance a new building to house the expanded operations. It also sold 60,000 shares of $4 par value stock at $51 per share to pay for new equipment. It also paid off short-term loans that support inventory and receivables totaling $700,000 as they came due and took out new short-term debt for the same purpose of $850,000, which was outstanding at year end. Lansing also made a scheduled pay- ment of $500,000 on an old long-term loan with which it had acquired produc- tion equipment several years ago. The payment included interest of $425,000.

Finally the firm paid dividends of $2.50 per share on 700,000 shares of outstanding common stock. Calculate and display the Cash from Financing Activities sec- tion of Lansing's statement of cash flows.

Reference no: EM131007576

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