Consider the following facts: Company A had the following transactions during 20

Question

Consider the following facts:

Company A had the following transactions during 2013:

1.   Issued $60,000 of par value common stock for cash.

2.   Repaid a 6 year note payable in the amount of $21,000.

3.   Acquired land by issuing common stock of par value $50,000.

4.   Declared and paid a cash dividend of $5,000.

5.   Sold a long-term investment (cost $63,000) for cash of $6,000.

6.   Acquired an investment in IBM stock for cash of $10,000.

What is the net cash provided by financing activities?

a. $0

b. None of these answers are correct.

c. $34,000

d. $39,000

e. $80,000

Explanation / Answer

The net cash provided by financing activities has been calculated with the use of following table:

Answer is $34,000 (Option C).

________

Notes:

1) Acquired land by issuing common stock of par value $50,000 is a non cash activity and will be reported as a seperate note to cash flow statement.

2) Sold a long-term investment (cost $63,000) for cash of $6,000 is an investing activity.

3) Acquired an investment in IBM stock for cash of $10,000 is an investing activity.

Amount Issued $60,000 of Par Value Common Stock for Cash 60,000 Less Repaid a 6 Year Note Payable in the Amount of $21,000 -21,000 Declared and Paid a Cash Dividend -5,000 Net Cash Provided by Financing Activities $34,000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.