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In the current year, Wall Company issued common stock for $200,000 cash. The company also paid cash dividends $30,000 and issued a two-year note payable to purchase equipment for $45,000. Bonds Payable increased from an issuance of bonds for cash for $50,000. Wall Company also purchased treasury stock that had a cost of $8,000 cash. The financing activities section of the statement of cash flows will report net cash provided by financing activities of:

1) $200,000
2) $30,000
3) $45,000
4) $50,000
5) $8,000

User Raks
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Final answer:

The net cash provided by Wall Company's financing activities is the sum of the cash inflows from issuance of stock and bonds ($200,000 + $50,000) minus the cash outflows for dividends and treasury stock purchases ($30,000 + $8,000), totaling $212,000. However, this is not one of the provided answer options, indicating a potential error in the question or answer choices.

The correct option is not given.

Step-by-step explanation:

The financing activities section of the statement of cash flows includes many types of transactions, but primarily focuses on changes in equity and debt. For the Wall Company, the net cash provided by financing activities can be calculated by taking into consideration the following:

Issuance of common stock for cash, payment of cash dividends, issuance of a note payable, issuance of bonds for cash, and the purchase of treasury stock.

Here's how each transaction contributes to the net cash from financing activities:

  • Issuance of common stock: +$200,000
  • Payment of dividends: -$30,000
  • Issuance of bonds: +$50,000
  • Purchase of treasury stock: -$8,000

The note payable is not included since it was specifically for the purchase of equipment and not a direct financing cash flow.

This gives:

Net cash provided by financing activities = $200,000 - $30,000 + $50,000 - $8,000 = $212,000

However, this exact answer option is not provided. Therefore, if these are the only provided options, there may be an error or misinterpretation in the question or answer choices.

The correct option is not given.

User Erving
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