Question

In preparing its cash flow statement for the year ended December 31, 2021, Green Co. gathered the following data: Gain on sale of land $ 12,100 Proceeds from sale of land 21,600 Purchase of Black, Inc., bonds (face value $200,000) 363,000 Amortization of bond discount 4,200 Cash dividends declared 92,000 Cash dividends paid 76,000 Proceeds from sales of Green Co. common stock 153,000 In its December 31, 2021, statement of cash flows, what amount should Green report as net cash from financing activities?

Answer 1

Answer:

$77,000

Explanation:

Data provided as per the question below:-

Proceeds from sale of common stock = $153,000

Cash dividends paid = $76,000

The computation of net cash from financing activities is given below:-

Cash inflow from Financing Activities =  Proceeds from sale of common stock - Cash dividends paid

= $153,000 - $76,000

= $77,000

Therefore for computing the net cash from financing activities we simply applied the above formula.