Reference no: EM132767204
Following is business the Cashflow by major categories:
Receipts from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $560,000
Sale of bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
Sale of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,000
Interest and dividends received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,000
Sale of equipment (at a $56,000 loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236,000
Cash used for:
Payments to employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $135,000
Payments to purchase inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000
Dividends on common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,000
Problem 1: The net amount of cash provided by or used for financing activities for the year is
Option 1: $410,000
Option 2: $354,000
Option 3: $254,000
Option 4: $454,000