Answered

The following T-account is a summary of the cash account of Alixon Company.

Cash (Summary Form)

Balance, Jan. 1 8,000
Receipts from customers 364,000 Payments for goods 200,000
Dividends on stock investments 6,000 Payments for operating expenses 140,000
Proceeds from sale of equipment 36,000 Interest paid 10,000
Proceeds from issuance of bonds payable 8,000 Taxes paid 300,000
Dividends paid 40,000 Balance, Dec. 31 316,000

Required:
What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows?

Answer :

Answer and Explanation:

The computation of the amount of net cash provided (used) by financing activities is shown below

Cash flows from financing activities

Proceeds from issuance of bonds payable $300,000

Less: dividend paid -$40,000

Net cash flow provided by financing activities $260,000

The positive amount represent the cash inflow while on the other hand the negative amount represent the cash outflow

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