The change in each of Kendall Corporation's balance sheet accounts last year follows:

Kendall Corporation's income statement for the year was:

There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by operating activities on the statement of cash flows is determined using the direct method.
-The net cash provided (used) by financing activities would be:
A)$(8,000)
B)$(13,000)
C)$20,000
D)$(3,000)

Question

The change in each of Kendall Corporation's balance sheet accounts last year follows:

Kendall Corporation's income statement for the year was:

There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by operating activities on the statement of cash flows is determined using the direct method.
-The net cash provided (used) by financing activities would be:
A)$(8,000) 
B)$(13,000) 
C)$20,000 
D)$(3,000)

Quizplus · Accepted Answer

The net cash provided (used) by financing activities would be $(8,000). This is because the company issued $20,000 in stock and used $28,000 to repurchase stock, resulting in a net cash outflow of $8,000.

The Change in Each of Kendall Corporation's Balance Sheet Accounts