The following data are available for Cole Company. Increase in accounts payable $200,000
Increase in bonds payable 500,000
Sale of investments 250,000
Issuance of ordinary shares 300,000
Payment of cash dividends 150,000
Net cash provided by financing activities is:
A) $450,000.
B) $650,000.
C) $800,000.
D) $850,000.

Question

Quizplus · Accepted Answer

Net cash provided by financing activities is calculated by adding the increases in bonds payable and ordinary shares issuance, and subtracting the cash dividends paid. 
Net cash provided by financing activities = (Increase in bonds payable + Issuance of ordinary shares) - Payment of cash dividends 
= (500,000 + 300,000) - 150,000 
= $650,000

The Following Data Are Available for Cole Company