Question

Sarasota Corporation had the following activities in 2017
1. Payment of accounts payable $817,000
2. Issuance of common stock $230,000
3. Payment of dividends $377,000
4. Collection of note receivable $97,000
5. Issuance of bonds payable $545,000
6. Purchase of treasury stock $42,000
Compute the amount Sarasota should report as net cash provided (used) by financing activities in its 2017 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).,)
Net cash __________ by financing activitiess _________.

Answer 1

Answer:

Net Cash provided in financing activities is $356,000

Explanation:

The cash flow from financing activities are the funds that the business took in or paid to finance its activities. These involve long term liability, issuance of stock, short term borrowing etc.

The financing activities in Sarasota Corporation report include; Issuance of common stock, Issuance of bonds payable, Payment of dividends, Purchase of treasury stock.

Cash provided by financing activities for the year 2017

Issuance of common stock   = $230,000

Issuance of bonds payable.  = $545,000  

Payment of dividends            = - $377,000

Purchase of treasury stock    = -$42,000

Net Cash provided in financing activities = $356000