In preparing its cash flow statement for the year ended December 31, 1998, Roman Co. collected the following data:
Gain on sale of equipment $6,000
Proceeds from sale of equipment 10,000
Purchase of A.S. Inc. bonds (par value $200,000) 180,000
Amortization of bond discount 2,000
Dividends declared 45,000 -
Dividends paid 38,000 -
Proceeds from sale of treasury stock
(carrying amount of $65,000) 75,000
In its December 31, 1998 statement of cash flows, what amount should Roman report as net cash provided by financing activities?
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A. B. C. D. E.B
Financing activities include the issuance and repurchase of shares, dividends paid and changes in long-term liabilities. In this case, there were dividends paid of
$38,000 and proceeds from sale of treasury stock of $75,000. Therefore, the net cash provided from financing activities is $37,000 ($75,000-38,000).