Spackel Corporation recorded the following events last year: Issuance of shares

Question

Spackel Corporation recorded the following events last year: Issuance of shares of the company's own common stock Purchase of long-term investment Dividends paid to the company's own shareholders Cash paid to suppliers for inventory purchases Repayment of principal on the company's own bonds Interest paid to lenders Collection by Spackel of a loan made to another company Purchase of equipment $380 $40,0 $18 $12 $370 $6 $110 $350,0 On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) financing activities on the statement of cash flows would be ($14,000) $1,286,000 $104,000o O ($8,000)

Explanation / Answer

Operating Activities      Cash outflows:           To suppliers for inventory 12000           To lenders for interest 6000 Investing Activities      Cash inflows:           From collection of principal on loans to other entities. 110000      Cash outflows:           To purchase of long term investment 40000           To purchase property, plant, and equipment. 350000 Financing Activities      Cash inflows:           From sale of equity securities.           From issuance of debt (bonds and notes). 380000      Outflows:           To stockholders as dividend. -18000           To redeem long-term debt or reacquire capital stock -370000 net cash flow from financing activity -8000 Thus and D would be correct

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