In preparing its cash flow statement for the year ended December 31,2016, Green
ID: 2421778 • Letter: I
Question
In preparing its cash flow statement for the year ended December 31,2016, Green Co. gathered the following data:
Gain on sale of land 12,000
Proceeds from sale of land 20,000
Purchase of Black Inc, bonds (FV 200,000) 360,000
Amortization of bond discount 4,000
Cash dividends declared 90,000
Cash dividends paid 76,000
Proceeds from sales of Green co Common stock 150,000
In its December 31, 2016, statement of cash flows, what amount should Green report as net csah from financing activities?
A. 40,000
B. 54,000
C. 60,000
D. 74,000
Explanation / Answer
Net cash flow from financing activities is $74,000
Option d
cash from sales of common stock 150,000 less cash dividend paid $76,000 = $74,000