Question

The following T-account is a summary of the Cash account of Skysong, Inc.. Cash (Summary Form) Balance, Jan. 1 8,100 Receipts from customers 362,500 Payments for goods 297,400 Dividends on stock investments 5,500 Payments for operating expenses 139,600 Proceeds from sale of equipment 35,600 Interest paid 12,000 Proceeds from issuance of Taxes paid 7,200 bonds payable 499,900 Dividends paid 60,100 Balance, Dec. 31 395,300 What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows

Answer 1

Answer: $439,800‬

Step-by-step explanation:

The financing activities of a firm are those that relate to the provision of capital to the business. This will therefore include long term liabilities and Equity transactions including Dividend payments.

The net cash provided (used) by financing activities = Proceeds from issuance of bonds payable (Inflow) - Dividends paid (Outflow)

= 499,900 - 60,100

= $439,800‬