Question

In Rooney Company, Treasury Stock increased $30,000 from a cash purchase, and Retained Earnings increased $80,000 as a result of net income of $124,000 and cash dividends paid of $44,000. Net cash used by financing activities is: Group of answer choices

Answer 1

Net cash used by financing activities is -$74,000

Step-by-step explanation:

Finance activities consist of items related to sourcing of capital and ownership in the business.

Prepare the Cash flow from Financing Activities Section of the Cash flow Statement as follows :

Cash flow from Financing Activities

Purchase of Treasury Stock - $30,000

Dividends Paid - $44,000

Net Cash from Financing Activities -$74,000

Conclusion :

Net cash used by financing activities is -$74,000