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In preparing its cash flow statement for the year ended December 31, 2016, Green

ID: 2474629 • 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 (face value $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 cash from financing activities?

$40,000.

$54,000.

$60,000.

$74,000.

Explanation / Answer

Cash dividends paid -76000 Proceeds from sales of Green Co. common stock 1,50,000 cash flow From Finanace activity 74,000