Given the following financial statements for ARGON Corporation, and as

Given the following financial statements for ARGON Corporation, and assuming that ARGON
paid a common dividend of $80,000 in 2010, what is the company’s financing cash flow for 2010?

Income Statement Balance Sheet
Year Ended 12/31/10 12/31/2010 12/31/2
Sales $1,300,000 Current Assets $50,000 $45
Cost of Goods Sold 750,000 Gross Fixed Assets 880,000 650
Operating Expenses 200,000 Less Accumulated Depreciation 450,000 350
Depreciation Expense 100,000 Fixed Assets 430,000 350
EBIT 250,000 Total Assets $480,000 $395
Interest Expense 50,000
EBT 200,000 Current Liabilities $35,000 $50
Taxes 80,000 Long-term Debt 330,000 270
Net Income $120,000 Common Stock 5,000 5
Retained Earnings 110,000 70
Total Liabilities & Equity $480,000 $395
A) -$15,000 B) -$65,000 C) -$10,000 D) -$70,000

ANSWER

D