The company will record $275,000 in financing cash flows for the current year.
"Financing cash flow," commonly referred to as "cash flows from financing," is the collective term for the net cash flows used to finance a company's capital. Financing activities include actions like the issuing of debt and shares as well as dividend payments.
Cash influx, which might originate from sales, investments, or finance, is money that enters a firm. A cash influx, or money entering a business, is the opposite of a cash outflow. To calculate your cash flow from financing activities, add your dividend payments to the cash received from the sale of shares or debt and subtract the sum. In a cash flow statement, they are also included.
Financing cash flows = Issued stock + Borrowed money from bank
Financing cash flows = $200,000 + $75,000
Financing cash flows = $275,000
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