Question

The following T-account is a summary of the cash account of Kingbird Company. Cash (Summary Form) Balance, Jan. 1 7,200 Receipts from customers 358,200 Payments for goods 209,100 Dividends on stock investments 5,600 Payments for operating expenses 129,600 Proceeds from sale of equipment 34,300 Interest paid 10,300 Proceeds from issuance of Taxes paid 7,800 bonds payable 301,700 Dividends paid 37,100 Balance, Dec. 31 313,100 What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows

Answer 1

$264,600

Step-by-step explanation:

The computation of net cash provided (used) by financing activities is shown below:-

Net cash inflow (Cash provided) by financing activities = Proceeds from bond issue - Dividend Paid

= $301,700 - $37,100

= $264,600

Therefore for computing the net cash provided (used) by financing activities we simply applied the above formula.