Question

Bramble's Vegetable Market had the following transactions during 2017: 1. Issued $45000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $17000. 3. Acquired land by issuing common stock of par value $45000. 4. Declared and paid a cash dividend of $7100. 5. Sold a long-term investment (cost $3000) for cash of $5500. 6. Acquired an investment in IBM stock for cash of $9700. What is the net cash provided by financing activities? $0 $28000 $61800 $20900

Answer 1

*Option(D). $20900 is the correct answer.

*Operating activities: It focuses on cash effects on transcation that create revenues and expenses.

*Investing activities It involves cashflows resulting from changes in investments and long-term asset items;
*Financing activities: It involves cashflows resulting from changes in long-term liability and stockholder's equity items.

$ Bramble's egetable Market Statement of Cash Flow For the year ended December 31,2017 CASH FLOWS FROM OPERATING ACTIVITIES Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Sale of Long-term Investment $ 5,500 Less: Acquired Investment of Stock - $ 9,700 Net cash provided by (used In) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Issue of Common stock $ 45,000 Repaid Notes payable - $ 17,000 Paid Dividends -$ 7,100 Net cash provided by used In) financing activities -$ 4,200 $ 20,900

*Acquired land by issuing common stock of par value- It doesn't involve any cashflow.. It is an exchange.[No Cashflow].

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