Question

Pharoah Corporation had the following activities in 2020. 1. Payment of accounts payable $843,000 4. Collection of note receivable $104,000 2. Issuance of common stock $256,000 5. Issuance of bonds payable $466,000 3. Payment of dividends $333,000 6. Purchase of treasury stock $45,000 Compute the amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

The amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows is $344,000.

Step-by-step explanation:

Pharoah Corporation

Statement of cash flows (extract)

Proceeds from common stock $256,000

Proceed from bond payable $466,000

Dividend paid ($333,000)

Purchase of treasury stock ($45,000)

Net cash flows from financing activities $344,000

Note that the payment of accounts payable and collection of notes receivable only affect the operating activities section of the cash flows.