Question

Stansfield Corporation had the following activities in 2012.

1. Payment of accounts payable: $770,000

2. Issuance of common stock: $250,000

3. Payment of dividends: $350,000

4. Collection of note receivable: $100,000

5. Issuance of bonds payable: $510,000

6. Purchase of treasury stock: $46,000

Compute the amount Stansfield should report as net cash provided by financing activities in its 2012 statement of cash flows.

Answer 1

Net cash provided by financing activities in 2012 is $364,000

Step-by-step explanation:

Computation of net financing activity.

Particular Amount

Issuance of common stock $250,000

Issuance of bonds payable $510,000

$760,000

Less: Payment of dividends $350,000

Less: Purchase of treasury stock $46,000

Net cash provided $364,000

Net cash provided by financing activities in 2012 is $364,000