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Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
- 1) Acquired $3,200 cash from issuing common stock.
- 2) Borrowed $2,300 from a bank.
- 3) Earned $3,200 of revenues.
- 4) Incurred $2,420 in expenses.
- 5) Paid dividends of $420.
Lexington Company engaged in the following transactions during Year 2:
- 1) Acquired an additional $600 cash from the issue of common stock.
- 2) Repaid $1,370 of its debt to the bank.
- 3) Earned revenues, $4,600.
- 4) Incurred expenses of $2,790.
- 5) Paid dividends of $760.
What is the net cash flow from financing activities on Lexington's statement of cash flows for Year 2?
-
$160 outflow
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$1,530 outflow
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$1,530 inflow
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$160 outflow
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$600 inflow
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