Use the following information for questions 16-17.
Oswald Ltd. has recently decided to go public and has hired you as their independent accountant. They wish to adhere to IFRS and know that they must prepare a statement of cash flows. Their financial statements for 2020 and 2019 are provided below: The following additional data were provided for calendar 2020:
1. Dividends declared and paid were $ 24,000.
2. Equipment was sold for $ 30,000. This equipment originally cost $ 44,000, and had a book value of $ 36,000 at the time of sale. The loss on sale was included in "selling and administrative expenses," as was the depreciation expense for the year.
3. Bonds were retired during the year at par.
-On a statement of cash flows for calendar 2020, the cash provided by (used in) by financing activities is
A) $ 6,000.
B) $ 24,000.
C) $ (54,000).
D) $ (30,000).

Question

Use the following information for questions 16-17.
Oswald Ltd. has recently decided to go public and has hired you as their independent accountant. They wish to adhere to IFRS and know that they must prepare a statement of cash flows. Their financial statements for 2020 and 2019 are provided below:  The following additional data were provided for calendar 2020:
1. Dividends declared and paid were $ 24,000.
2. Equipment was sold for $ 30,000. This equipment originally cost $ 44,000, and had a book value of $ 36,000 at the time of sale. The loss on sale was included in "selling and administrative expenses," as was the depreciation expense for the year.
3. Bonds were retired during the year at par.
-On a statement of cash flows for calendar 2020, the cash provided by (used in) by financing activities is
A) $ 6,000. 
B) $ 24,000. 
C) $ (54,000). 
D) $ (30,000).

Quizplus · Accepted Answer

The cash provided by (used in) financing activities is calculated by considering the inflows and outflows of cash related to financing activities such as issuing or repaying debt, issuing or repurchasing equity, and paying dividends. The given options suggest a calculation is needed, but without specific financial data provided, the correct answer cannot be determined through calculation. However, based on the question's structure, if we assume option C is correct, it indicates a net outflow of cash from financing activities amounting to $54,000, suggesting that the company paid more in financing activities than it received.

Use the Following Information for Questions 16-17