Blair Madison Co. issues $1.5 million of new stock and pays $241,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.55 million in a new bond issue and paid off existing bonds with a face value of $2.25 million. The company bought 505 of another company's $1050 bonds at a $105,000 premium. The net cash flow provided by financing activities is:
A. An inflow of $559,000.
B. An inflow of $700,000.
C. An outflow of $105,000.
D. An outflow of $241,000.
Answer: A
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