Answer:
Option (d) is correct.
Explanation:
Given that,
Gain on sale of land = $12,000
Proceeds from sale of land = 20,000
Purchase of Black, Inc., bonds (face value $200,000) = 360,000
Amortization of bond discount = 4,000
Cash dividends declared = 90,000
Cash dividends paid = 76,000
Proceeds from sales of Green Co. common stock = 150,000
Net cash from financing activities:
= Cash dividends paid + Proceeds from sales of Green Co. common stock
= ($76,000) + $150,000
= $74,000
Note that:
Only, issue of common stock and payment of cash dividends are financing activities.
All other information shall not be used in determining cash flows from financing activities.
