The most recent balance sheet and income statement of Oldaker Corporation appear below: The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities for the year was:
A) $(42)
B) $3
C) $11
D) $(28)

Question

The most recent balance sheet and income statement of Oldaker Corporation appear below:  The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities for the year was:
A) $(42) 
B) $3 
C) $11 
D) $(28)

Quizplus · Accepted Answer

The company did not retire any bonds payable or repurchase any of its own common stock, so there were no cash outflows for financing activities. The company paid a cash dividend of $42, which is a cash outflow for financing activities. Therefore, the net cash provided by financing activities for the year was ($42), or a cash outflow of $42. This is option D.

The Most Recent Balance Sheet and Income Statement of Oldaker