Question

Metlock, Inc. had the following transactions during 2017:

1. Issued $227500 of par value common stock for cash.

2. Recorded and paid wages expense of $109200.

3. Acquired land by issuing common stock of par value $91000.

4. Declared and paid a cash dividend of $18200.

5. Sold a long-term investment (cost $5460) for cash of $5460.

6. Recorded cash sales of $728000.

7. Bought inventory for cash of $291200.

8. Acquired an investment in Zynga stock for cash of $38220.

9. Converted bonds payable to common stock in the amount of $910000.

10. Repaid a 6-year note payable in the amount of $400400. What is the net cash provided by financing activities?

a.718900 b.1101100 c.209300 d.(191100)

Answer 1

The net cash provided by financing activities

The net cash provided by financing activities = Proceeds from issue of common stock – Dividends paid – Repayment of 6-year note payable

= $227,500 - $18,200 - $400,400

= -$191,100 (Negative)

“Hence, the net cash provided by financing activities will be -$191,100 (Negative)”