Question

Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) financing activities for the year was:

Answer 1

The net cash provided by (used in) financing activities for the year is $12.

Step-by-step explanation:

The net cash provided by (used in) financing activities for the year can be calculated by considering the changes in non-cash assets and liabilities that involve financing activities.

Since the company did not dispose of any property, plant, and equipment, issue bonds payable, or repurchase common stock, the only financing activity to consider is the cash dividends.

Cash dividends are a cash outflow from financing activities. Therefore, the net cash provided by (used in) financing activities for the year is the amount of cash dividends, which is $12.