Question

Windsor Corporation engaged in the following cash transactions during 2020. Sale of land and building $187570 Purchase of treasury stock 47300 Purchase of land 41800 Payment of cash dividend 89800 Purchase of equipment 53000 Issuance of common stock 151300 Retirement of bonds 106800 Compute the net cash used (provided) by financing activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

Answer:

  cash flow used by financing activities         (92,600)

Explanation:

Financing activities: loan taken and principal payment. It also includes stock transactions.

proceeds from issuance of common stock    151,300

purchase of treasury stock                             (47,300)

dividends payment                                         (89,800)

redemption of bonds                                    (106,800)  

  cash flow used by financing activities         (92,600)

The land and building transaction represent investing activities. So we ignore them from the calculation.