Question

In 2017, Walker Company issued common stock for $200,000 cash. The company also paid cash dividends of $30,000, and issued a two-year note payable to purchase equipment for $45,000. Bonds payable increased from the issuance of bonds for $50,000 cash. The statement of cash flows should report net cash provided by financing activities of?

Answer 1

Answer:

The statement of cash flows should report net cash provided by financing activities of $265,000.

Explanation:

Cash Flow from Financing activites:

Common stock issued =     $200,000

Dividend Payment =           ($30,000)

Issuance of note payable = $45,000

Issuance of Bond =             $50,000

Net cash flow =                     265,000

The statement of cash flows should report net cash provided by financing activities of $265,000.