Question

Joy Elle’s Vegetable Market had the following transactions during 2010: Issued $50,000 of par value common stock for cash. Repaid a 6 year note payable in the amount of $22,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $2,000. Sold a long-term investment (cost $63,000) for cash of $6,000. Acquired an investment in IBM stock for cash of $12,000. What is the net cash provided by financing activities?

Answer 1

Answer:

$26,000

Explanation:

                    Joy Elle’s Vegetable Market

               Cash flow from Financing Activities

Issuance of Stock                                          $50,000

Less: Repaid Note payable                          $22,000

Less: Paid Dividend                                       $2,000

Net Cash provided by financial activities  $26,000

-Acquired land by issuing common stock is a Non cash investing and financing activities under cash flow

-Sold a long-term investment for cash is an investing activities under cash flow

-Acquired an investment in IBM stock for cash is an Investing activities under Cash flow