Tucker Tutoring Service Company recorded the following cash transactions for the year: Paid $55000 for salaries.
Paid $7000 to purchase office equipment.
Paid $6000 for utilities advertising and supplies.
Paid $12000 for rent.
Paid $18000 in dividends.
Collected $125000 from customers.
Borrowed $20000 from the bank.
What was the company's net cash provided (used) by financing activities?
A)($2000)
B)$2000
C)$22000
D)The amount cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

Financing activities include cash transactions related to borrowing and dividends. The company borrowed $20,000 and paid $18,000 in dividends, resulting in a net cash provided by financing activities of $2,000 ($20,000 - $18,000).

Tucker Tutoring Service Company Recorded the Following Cash Transactions for the Year