Final answer:
Treasury Stock increased by $15,000, and Retained Earnings increased by $40,000 due to net income and cash dividends. The net cash used by financing activities is calculated by subtracting the increase in Treasury Stock from the increase in Retained Earnings, resulting in $25,000.
Step-by-step explanation:
Treasury Stock is a contra-equity account that represents the company's own stock that has been repurchased and is held by the company. When Treasury Stock increases, it means that the company has purchased its own stock back from shareholders. In this case, the increase in Treasury Stock of $15,000 indicates that the company bought back $15,000 worth of its own stock.
Retained Earnings represents the accumulated net income of the company that has not been distributed to shareholders as dividends. When Retained Earnings increases, it means that the company has earned net income for the period. In this case, the increase in Retained Earnings of $40,000 is due to the net income of $62,000 minus the cash dividends paid of $22,000.
The net cash used by financing activities can be calculated by subtracting the increase in Treasury Stock from the increase in Retained Earnings: $40,000 - $15,000 = $25,000.