Net income $ 15,500 Cash dividends paid to stockholders 3,600 Cash proceeds from sale of land 3,800 Cash proceeds from bank loan

Question

3 years ago

15

Net income $ 15,500 Cash dividends paid to stockholders 3,600 Cash proceeds from sale of land 3,800 Cash proceeds from bank loan

9,800 Cash payment (principal) on bank loan 2,700 Cash paid to purchase equipment 7,200 The company would report net cash provided by (used in) financing activities of:

Business

1 answer:

lozanna [386] · Answer 1 · 2022-04-24T10:31:53+03:00

Answer: 3500

Explanation:

The company would report net cash provided by (used in) financing activities based on the following:

Cash proceeds from bank loan 9,800

Less: Cash dividends paid to stockholders 3,600

Less: Cash payment (principal) on bank loan 2,700

Cash flow on financing activity will now be:

= (9800 - 3600 - 2700)

= 9800 - 6300

= 3500

Therefore, the The company would report net cash provided by (used in) financing activities of 3500