Question

Selected information from Dinkel Company's 2018 accounting records is as follows: Proceeds from issuance of common stock $ 800,000 Proceeds from issuance of bonds 2,400,000 Cash dividends on common stock paid 290,000 Cash dividends on preferred stock paid 120,000 Purchases of treasury stock 240,000 Sale of stock to officers and employees not included above 200,000 Dinkel's statement of cash flows for the year ended December 31, 2018, would show net cash provided (used) by financing activities of

Answer 1

Answer:

Dinkel's statement of cash flows for the year ended December 31, 2018, would show net cash provided (used) by financing activities of $2,750,000.

Explanation:

Dinkel Company

Statement of cash flows (extract)

Proceed from issuance of common stock                     $800,000

Proceed from issuance of bonds                                  2,400,000

Cash dividend on common stock paid                          (290,000)

Cash dividend on preferred stock paid                         (120,000)

Purchase of treasury stock                                             (240,000)

Proceed from sale of stocks                                            200,000

Net cash provided (used) by financing activities   $2,750,000