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Warner Limited Classifies Interest Paid and Interest Received a Operating

Question 7

Multiple Choice

Warner Limited classifies interest paid and interest received a operating activities. Warner Limited had the following cash flows during a reporting period:
Consideration paid to acquire a subsidiary, net of cash acquired $250 000
Dividends paid $65 000
Repayment of borrowings $90 000
Interest paid on borrowings $57 000
Proceeds from sale of plant $215 000
What is the amount of the cash flows in relation to financing activities of Warner Limited for the reporting period?


A) Net cash inflow $155 000.
B) Net cash outflow $155 000.
C) Net cash inflow $212 000.
D) Net cash outflow $212 000.

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