Total sources of funds are calculated as:
a. operating cash flows + new issues of equity
b. operating cash flows + new issues of equity + new issues of long-term debt
c. operating cash flows + new issues of equity-new issues of long-term debt
d. operating cash flows + new issues of equity-dividend paid to shareholders

Question

Total sources of funds are calculated as:
a. operating cash flows + new issues of equity
b. operating cash flows + new issues of equity + new issues of long-term debt
c. operating cash flows + new issues of equity-new issues of long-term debt
d. operating cash flows + new issues of equity-dividend paid to shareholders

Kierra · Accepted Answer

b. operating cash flows + new issues of equity + new issues of long-term debt
A firm gets funds from the proceeds of the issue of equity shares, the issue of long-term debt, and the cash inflows from operating activities.

total sources of funds are calculated as

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