Marbry Corporation\'s balance sheet and income statement appear below: Cash divi

Question

Marbry Corporation's balance sheet and income statement appear below:

Cash dividends were $7. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was:v: 05_24_2013_QC_31013

Multiple Choice

$(27)

$(24)

$(7)

$10

Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 38 $ 33 Accounts receivable 49 52 Inventory 58 52 Total current assets 145 137 Property, plant, and equipment 460 420 Less accumulated depreciation 258 252 Net property, plant, and equipment 202 168 Total assets $ 347 $ 305 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 51 $ 47 Accrued liabilities 24 18 Income taxes payable 47 47 Total current liabilities 122 112 Bonds payable 97 124 Total liabilities 219 236 Stockholders’ equity: Common stock 42 32 Retained earnings 86 37 Total stockholders’ equity 128 69 Total liabilities and stockholders' equity $ 347 $ 305

Explanation / Answer

Second option. (24) is correct.

Bonds redeemed= closing balance - opening balance= 97-124= (27)

Common stock issued= 42-32= 10

Cash flow from financing activities: Redemption of debt                        (27) Issue of common stock                          10 Dividend paid                          (7) Net cash from/(used in) financing activities                        (24)

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