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 net cash provided by (used in) financing activities is the sum of the cash flows from all financing activities, which include issuing or repurchasing stock, paying dividends, and borrowing or repaying loans. Since the company did not repurchase any stock, retire any bonds payable, or borrow or repay loans, the only financing activity that occurred was the payment of dividends in the amount of $42, which resulted in a net cash used in financing activities of ($42). Therefore, the correct answer is choice letter D.

The Most Recent Balance Sheet and Income Statement of Oldaker