Final answer:
Cosmat Inc.'s Cash Flows from (used for) Financing Activities section shows a cash inflow from issuing common stock of +$156,000, an outflow from paying dividends of -$15,000, and an outflow from retiring bonds payable of -$160,000. The total net cash used for financing activities is -$19,000.
Step-by-step explanation:
Cash Flows from Financing Activities
To prepare the Cash Flows from (used for) Financing Activities section of the statement of cash flows for Cosmat Inc., we analyze changes in equity and long-term liabilities to determine cash inflows and outflows related to financing activities during 20Y9.
Payment of Dividends: Cosmat Inc. declared dividends of $15,000. Assuming that all the declared dividends were paid, the cash outflow is -$15,000.
Retirement of Bonds Payable: Bonds payable decreased by $160,000 (from $450,000 to $290,000). This decrease represents a cash outflow as the company used cash to retire the bonds, so -$160,000.
Issuance of Common Stock: 6,000 shares of common stock were issued for $26 per share. The cash inflow from this issuance is 6,000 shares × $26/share = $156,000.
The cash flows from financing activities can be summarized as follows:
Issuance of common stock: +$156,000
Payment of dividends: -$15,000
Retirement of bonds payable: -$160,000
The total net cash used for financing activities is +$156,000 - $15,000 - $160,000 = -$19,000.