Question

Financing Activities on the Statement of Cash Flows Takaki Inc. reported net income of $53,000 for 20Y7. The liability and equity accounts from the company's comparative balance sheet are as follows: Dec. 31, 2047 Dec. 31, 2016 Accounts payable $31,900 $28,400 Dividends payable 5,000 3,000 Common stock, $5 par value 80,000 75,000 Paid-in capital in excess of par-common stock 37,000 30,000 Retained earnings 130,600 81,600 During the year, the company declared dividends of $4,000 and issued 1,000 shares of common stock for $12 per share. Prepare the Cash Flows from (used for) Financing Activities section of the statement of cash flows. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Takaki Inc. Statement of Cash Flows (partial) Cash flows from (used for) financing activities: Cash received from issuing common stock 12,000 Cash dividends 4,000 х Net cash flows from financing activities $ 16,000 X

Answer 1

$ Cash flow from (used for) financing activities: Cash received from issuing common stock Cash dividend Net Cash flow from financing activities $ $ 12,000 -6,000 6,000 $ Calculation of Cash dividend paid: Beginning of dividend payable Add:Dividend declared in this year Less: Ending of Dividend payable Cash dividend paid $ $ $ 5,000 4,000 -3,000 6,000