Question

Vaughn Manufacturing had the following transactions during 2022:

1. Issued $272500 of par value common stock for cash.
2. Recorded and paid wages expense of $130800.
3. Acquired land by issuing common stock of par value $109000.
4. Declared and paid a cash dividend of $21800.
5. Sold a long-term investment (cost $6540) for cash of $6540.
6. Recorded cash sales of $872000.
7. Bought inventory for cash of $348800.
8. Acquired an investment in Zynga stock for cash of $45780.
9. Converted bonds payable to common stock in the amount of $1090000.
10. Repaid a 6-year note payable in the amount of $479600.

What is the net cash provided by financing activities?

a. $(228900).
b. $250700.
c. $861100.
d. $1318900.

Answer 1

Answer and Explanation:

The computation of the net cash provided by financing activities is given below:

Cash provided by financing activities

Issuance of the common stock for cash $272,500

Less: cash dividend paid -$21,800

Less: repaid note payable $479,600

Net cash used in financing activities -$228,900

The positive means cash inflow and the negative means cash outflow