Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

In preparing a company\'s statement of cash flows for the year just ended, the f

ID: 2458695 • Letter: I

Question

In preparing a company's statement of cash flows for the year just ended, the following information is available:

Net cash flows from financing activities for the year were:

a) $147,000 of net cash used.

b) $26,000 of net cash used.

c) $347,000 of net cash used.

d) $51,000 of net cash used.

e) $340,000 of net cash used.

Loss on the sale of equipment $14,000 Purchase of equipment $225,000 Proceeds from the sale of equipment $106,000 Repayment of outstanding bonds $87,000 Purchase of treasury stock $25,000 Issuance of common stock $96,000 Purchase of land $115,000 Increase in accounts receivable during the year $33,000 Decrease in accounts payable during the year $75,000 Payment of cash dividents $35,000

Explanation / Answer

d) $51,000 of net cash used.

Net cash flows from financing activities for the year were:

Cash Flows from Financing Activities Amount Issuance of common stock $96,000 Repayment of outstanding bonds -$87,000 Purchase of treasury stock -$25,000 Payment of cash dividents -$35,000 Net cash flows from financing activities -$51,000