A corporation prepared its statement of cash flows for the year.The following information is taken from that statement:

What is the amount of net cash provided by (used in)financing activities?
A) $15,400
B) ($3,300)
C) ($15,400)
D) $3,300

Question

A corporation prepared its statement of cash flows for the year.The following information is taken from that statement:

What is the amount of net cash provided by (used in)financing activities?
A) $15,400 
B) ($3,300) 
C) ($15,400) 
D) $3,300

Quizplus · Accepted Answer

The net cash provided by (used in) financing activities is calculated as the sum of cash inflows from issuing stock and borrowing money, minus the cash outflows from paying dividends and repaying borrowings. In this case, the cash inflows from issuing stock and borrowing money is $0 ($10,000 + $4,400 = $14,400) and the cash outflows from paying dividends and repaying borrowings is ($15,800). Therefore, the net cash provided by (used in) financing activities is ($15,800) - $0 = ($15,800), which is closest to answer choice C.

A Corporation Prepared Its Statement of Cash Flows for the Year.The