Question

The following data are available for Something Strange: Issuance of bonds payable $100,000 Sale of investment 50,000 Issuance of common stock 60,000 Payment of cash dividends 30,000 How much is net cash provided by financing activities

Answer 1

Answer:

Cash provided by financing activities = $130,000

Explanation:

Financing Activities are those activities which arrange source of money for the company and further any kind of cost in terms of dividend paid or interest paid towards such finance and repayment of such funds, are all included under such activities.

Here, in the given instance, we have

Issuance of bonds $100,000 Will generate cash inflow

Sale of investment is investing activity and not financing

Issuance of common stock $60,000 will generate cash inflow

Payment of cash dividends $30,000 is a cash outflow

Cash provided by financing activities = $100,000 + $60,000 - $30,000 = $130,000