Question

i need help finding question 3. but it will be helpfull too if you can help with all 3.

3) In preparing its cash flow statements for the year ended December 31, year 7, a company collected the following data:

   Proceeds from the sale of the company’s own stock            $30,000

   Payment to acquire shares of another company’s common stock          2,400

   Dividends paid to the company’s own shareholders               15,200  

   Payment of interest on bonds payable                       18,000

In its December 31, year 7 statement of cash flows what amount should be reported as net cash provided by financing activities?

$12,000

$14,800

$86,800

$68,800

4) How should a loss in from the sale of an investment in another company’s stock be reported in a statement of cash flows using the indirect method?

In operating activities as a deduction from income

In operating activities as an assiteion to income

In investment activities as a reduction of the cash inflow from the sale

In investment activities as a cash outflow

5) in a statement of cash flows (using indirect approach for operating activities) a decrease in accounts receivable should be prepared as a(n)

Addition to net income

Outflow in financing activities

Deduction from net income

Inflow in investing activities

Answer 1

SOLUTION

Question - 3

Net cash provided by financing activities - $14,800

	Amount ($)
Cash provided by financing activities:
Proceeds from the sale of the company’s own stock	30,000
Dividends paid to the company’s own shareholders	(15,200)
Net cash provided by financing activities	14,800

Financing activities include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed. Dividends paid, not dividends declared, should be included as an outflow of cash from financing activities.