Oklahoma Corp. uses the indirect method to prepare its statement of cash flows.

Question

Oklahoma Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2018:

1. Long-Term Notes Payable, beginning balance, $ 84, 000

2. Long-Term Notes Payable, ending balance, $99,000

3. Common Stock, beginning balance, $ 3,600

4. Common Stock, ending balance, $ 30,000

5. Retained Earnings, beginning balance, $ 80,000

6. Retained Earnings, ending balance, $ 119,000

7. Treasury Stock, beginning balance, $ 5,400

8. Treasury Stock, ending balance, $ 10,500

9. No stock was retired.

10. No treasury stock was sold.

11. During 2018, the company repaid $ 37,000 of long-term notes payable.

12. During 2018, the company borrowed $ 29,000 on new long-term notes payable.

13. Net income for the year was $ 50,000.

14. Assume all dividends declared during the year were paid.

What is the net cash provided by financing activities?

A. 10,300

B. 2,300

C. (8,000)

D.21,300

Explanation / Answer

B. 2,300 Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Amount Cash flow from Financing activities Issue of Stock = 30,000 - 3,600        26,400.00 Purchase of treasury stock = 10,500 - 5,400        (5,100.00) Issue of long term notes          29,000.00 Repayment of long term notes      (37,000.00) Dividends Paid = 80,000 + 50,000 - 119,000      (11,000.00) Cash flow from Financing activities                         2,300.00

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