The following data are available for Two-off Company. $$\begin{array} { l r }
\text { Increase in accounts payable } & \$ 120,000 \
\text { Increase in bonds payable } & 300,000 \
\text { Sale of investments } & 150,000 \
\text { Issuance of common stock } & 160,000 \
\text { Payment of cash dividends } & 90,000
\end{array}$$ Net cash provided by financing activities is:
A) $180,000.
B) $370,000.
C) $360,000.
D) $420,000.

Question

The following data are available for Two-off Company. $$\begin{array} { l r } 
\text { Increase in accounts payable } & \$ 120,000 \
\text { Increase in bonds payable } & 300,000 \
\text { Sale of investments } & 150,000 \
\text { Issuance of common stock } & 160,000 \
\text { Payment of cash dividends } & 90,000
\end{array}$$ Net cash provided by financing activities is:
A) $180,000.
B) $370,000.
C) $360,000.
D) $420,000.

Quizplus · Accepted Answer

Net cash provided by financing activities includes cash inflows from issuance of common stock ($160,000) and increase in bonds payable ($300,000), minus cash outflows for payment of cash dividends ($90,000). Therefore, $160,000 + $300,000 - $90,000 = $370,000.

The Following Data Are Available for Two-Off Company Net Cash Provided by Financing Activities Is: A) $180,000

The Following Data Are Available for Two-Off Company Net Cash Provided by Financing Activities Is:
A) $180,000