Question

Ware Company declared and paid $89,000 in cash dividends during the year. The Company’s comparative balance sheet and income statement for last year appear below. No dispositions of plant and equipment occurred during the year.

	Statement of Financial Position
		Ending	Beginning
		Balance	Balance
	Cash............................................................................................................................................	$ 38,000	$ 23,000
	Accounts receivable.................................................................................................................	31,000	39,000
	Inventory....................................................................................................................................	26,000	38,000
	Prepaid expenses.......................................................................................................................	21,000	12,000
	Long-term investments............................................................................................................	250,000	220,000
	Plant and equipment................................................................................................................	410,000	360,000
	Accumulated depreciation......................................................................................................	(262,000)	(222,000)
	Total assets................................................................................................................................	$514,000	$470,000
	Accounts payable.....................................................................................................................	$ 75,000	$ 53,000
	Accrued liabilities......................................................................................................................	9,000	23,000
	Taxes payable...........................................................................................................................	40,000	38,000
	Bonds payable..........................................................................................................................	100,000	130,000
	Common stock..........................................................................................................................	80,000	60,000
	Retained earnings.....................................................................................................................	210,000	166,000
	Total liabilities and owners’ equity........................................................................................	$514,000	$470,000
	Income Statement
	Sales............................................................................................................................................	$990,000
	Less cost of goods sold............................................................................................................	510,000
	Gross margin..............................................................................................................................	480,000
	Less operating expenses..........................................................................................................	290,000
	Net operating income...............................................................................................................	190,000
	Less income taxes.....................................................................................................................	57,000
	Net income.................................................................................................................................	$133,000

The net cash provided by (used in) financing activities last year was:

Question 32 options:

	$10,000
	$(10,000)
	$99,000
	$(99,000)

Answer 1

Financing activities:
Issue of common stock	$20,000
Payment of bonds payable	(30,000)
Payment of cash dividend	(89,000)
Net cash provided by (used in) financing activities	$(99,000)