Question

Carla Corporation engaged in the following cash transactions during 2020. Sale of land and building $181,050 Purchase of treasury stock 42,900 Purchase of land 41,400 Payment of cash dividend 89,700 Purchase of equipment 59,500 Issuance of common stock 150,700 Retirement of bonds 102,700 Compute the net cash used (provided) by financing activities

Answer 1

Answer:

the net cash used (provided) by financing activities is $ 84,600

Explanation:

Under GAAP, the Dividends payment is accounted as a financing Activity.

Cash flow from Financing Activities

Purchase of treasury stock                                  (42,900)

Payment of cash dividend                                   (89,700)

Issuance of common stock                                  150,700

Retirement of bonds                                            (102,700)

Net Cash flow from financing Activities              (84,600)