Barrow Company recorded the following cash transactions for the year: Paid $115000 for salaries.
Paid $40000 to purchase office equipment.
Paid $9000 for utilities.
Sold investments for cash of $5000.
Paid $11000 in dividends.
Collected $295000 from customers.
Issued shares for cash of $120000.
What was Barrow's net cash provided (used) by financing activities?
A)$60000
B)$65000
C)$69000
D)$109000

Question

Quizplus · Accepted Answer

Net cash provided (used) by financing activities is calculated by subtracting cash paid out from cash received for financing activities. In this case, cash received for financing activities is $120000 (from issuing shares for cash) and cash paid out is $11000 (in dividends), which gives us a net cash provided by financing activities of $109000.

Barrow Company Recorded the Following Cash Transactions for the Year