Question

Box a nongovernmental not-for-profit organization had the following transactions during the year:_______Proceeds from sale of investments $80,000 Purchase of property, plant and equipment $10,000 Proceeds from long-term debt $100,000 Loss on sale of investment $5,000What amount should be reported as net cash provided by financing activities in Box's statement of cash flows? a. $70,000 b. $75,000 c. $80,000 d. $100,000

Answer 1

Answer:

d. $100,000

Explanation:

Proceeds from sale of investments belongs to the Investing activities section of cash flow

Purchase of property, plant and equipment $10,000 belongs to the Investing activities section of  cash flow

Proceeds from long-term debt $100,000 belongs to the Financing activities section of cash flow

Loss on sale of investment $5,000 belongs to the operating activities section of cash flow

Hence, the net cash provided by financing activities in Box's statement of cash flow is $100,000

Particulars                                        Amount$

Proceed from long term debt         100,000

Net Financing cash flow               $100,000