A company reports the following balances: During 2018,net income of $29,000 was reported.No treasury stock was sold during 2018.No common stock was retired during 2018.No land was sold during 2018.What financing activities are reported on the statement of cash flows prepared with the indirect method for the year ending December 31,2018?
A)sale of treasury stock $2000 and Payment of dividends $13,000
B)purchase of treasury stock $2000,Payment of dividends $13,000 and Sale of common stock $151,000
C)sale of treasury stock $2000,purchase of land $10,000.
D)payment of dividends $16,000,Sale of common stock $167,000,and Purchase of treasury stock $2000

Question

A company reports the following balances:  During 2018,net income of $29,000 was reported.No treasury stock was sold during 2018.No common stock was retired during 2018.No land was sold during 2018.What financing activities are reported on the statement of cash flows prepared with the indirect method for the year ending December 31,2018?
A)sale of treasury stock $2000 and Payment of dividends $13,000 
B)purchase of treasury stock $2000,Payment of dividends $13,000 and Sale of common stock $151,000 
C)sale of treasury stock $2000,purchase of land $10,000. 
D)payment of dividends $16,000,Sale of common stock $167,000,and Purchase of treasury stock $2000

Quizplus · Accepted Answer

Purchase of treasury stock of $2000 ($18,000 - $16,000),Payment of dividends of $13,000 ($68,000 beginning retained earnings + $29,000 net income - $77,000 ending retained earnings),Sale of common stock $151,000 ($168,000 - $14,000).Purchase of land with cash appears with investing activities,not financing activities.

A Company Reports the Following Balances: During 2018,net Income