Question

Payment for the early retirement of long-termbonds payable (carrying amount $370,000) $375,000Distribution in Year 2 of cash dividend declared in Year 1 to preferred shareholders 31,000Carrying amount of convertible preferred stock \in Xan, converted into common shares 60,000Proceeds from sale of treasury stock (carrying amount at cost, $43,000) 50,000During Year 2, Xan, Inc. had the following activities related to its financial operations:Xan uses U.S. GAAP. In Xan's Year 2 statement of cash flows, net cash used in financing operations shouldbe:

Answer 1

Cash used for financing activities 356,000

Step-by-step explanation:

extinguish of bonds payable (375,000)

preferred dividends (31,000)

proceeds from TS 50,000

Cash used for financing activities 356,000

The conversion do nt involve cash, so it is not included in the cash flow statement.

The carrying ammount, gain and losses are not relevant for the cash flow statement.

We have to focus in the cash movements only.