The following events occurred last year for the Cart Corporation: Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows was:
A)$12,000
B)$24,000
C)$20,000
D)$49,000

Question

The following events occurred last year for the Cart Corporation:  Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows was:
A)$12,000 
B)$24,000 
C)$20,000 
D)$49,000

Quizplus · Accepted Answer

The events listed in the statement represent transactions related to financing activities. From the given information, we can see that the proceeds from issuing long-term debt were $36,000 and the repayment of long-term debt was $12,000. Therefore, the net cash provided by financing activities can be calculated as:

Net cash provided by financing activities = Proceeds from issuing long-term debt - Repayment of long-term debt
Net cash provided by financing activities = $36,000 - $12,000
Net cash provided by financing activities = $24,000

Therefore, the correct answer is B) $24,000.

The Following Events Occurred Last Year for the Cart Corporation