10, 5, 19 ash s Receivable uildings 110, 24 187 To 108 8, 25, 20, 35, ts Payable

Question

10, 5, 19 ash s Receivable uildings 110, 24 187 To 108 8, 25, 20, 35, ts Payable Depre-Buildings s Payable (due 2050) Common Stock ($1 par value) 36 187 Retained Earnings To 108, SALLY COMPANY INCOME STATEMENT For The Year Ended December 31, 2012 132, Cost of Goods Sold 93, iation Expense et Income 24 tional Data: 1. Sally declared and paid cash dividends of $8,000 during 2012. ssued $12,000 of Bonds Payable at face value during 2012 for cash. Purchased Land during 2012 for cash. ssued 41,000 shares of common stock at par for cash during 2012. Constructed an addition to the Buildings during 2012 for cash. The net amount of cash received (used) for financing activities during 2012 is: O $38,000 $55,000 $53,000 $61,000 of the

Explanation / Answer

The net amount of cash received from financing activities during 2012 is calculated as below:

Net Amount of Cash Received = Proceeds from Issuance of Bonds + Proceeds from Issuance of Common Stock - Dividends Paid

_____

Here, Proceeds from Issuance of Bonds = 12,000, Proceeds from Issuance of Common Stock = $41,000 and Dividends Paid = $8,000

Using these values in the above equation, we get,

Net Amount of Cash Received from Financing Activities = 12,000 + 41,000 - 8,000 = $45,000

Answer is "None of the Above" (which is Option E)

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