In preparing a company\'s statement of cash flows for the year just ended, the f
ID: 2443253 • Letter: I
Question
In preparing a company's statement of cash flows for the year just ended, the following information is available:Loss on the sale of equipment $12,000
Purchase of equipment $155,000
Proceeds from the sale of equipment $126,000
Repayment of outstanding bonds $91,000
Purchase of treasury stock $69,000
Issuance of common stock $90,000
Purchase of land $116,000
Increase in accounts receivable during the year $42,000
Decrease in accounts payable during the year $71,000
Payment of cash dividends $43,000
Net cash flows from financing activities for the year were:
1. $133,000 of net cash used by financing activities.
2. $113,000 of net cash used by financing activities.
3. $281,000 of net cash used by financing activities.
4. $234,000 of net cash used by financing activities.
5. $160,000 of net cash used by financing activities.
Explanation / Answer
So the option (2.) $113,000 of net cash used by financing activities. Is correct