Question

Larkspur, Inc. reported net cash provided by operating activities of $380,000, net cash used by investing activities of $154,700 (including cash spent for capital assets of $201,000), and net cash provided by financing activities of $84,400. Dividends of $128,500 were paid.What was the cash flow provided (used) by financing activities?A) ($95,000)B) ($93,000)C) ($97,000)
D) Cannot be determined from information provided.

Answer 1

Answer:

The correct option is D, cannot be determined from information provided

Explanation:

The cash used(provided) by financing activities is the difference between the cash provided by financing activities of $84,400 and the amount of dividends paid to stockholders which is $128,500.=$44,100.

The amount calculated above is not one of the options available, hence it is very safe to say that the correct option is that cash provided(used) by financing activities cannot be determined from the information provided.