The following events occurred last year for the Cart Corporation: Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows was:
A)$12,000
B)$24,000
C)$20,000
D)$49,000

Question

The following events occurred last year for the Cart Corporation:  Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows was:
A)$12,000 
B)$24,000 
C)$20,000 
D)$49,000

Quizplus · Accepted Answer

The only information provided is the increase in the stockholders' equity from $50,000 to $74,000. Since equity is part of financing activities, it can be assumed that the increase was a result of financing activities (i.e. issuing stock or borrowing funds). The increase of $24,000 would be the net cash provided by financing activities for the year.

The Following Events Occurred Last Year for the Cart Corporation