Windwhirl Company reported net income of $150,000 and a $5,000 gain on the sale of equipment. The cash received from the sale of equipment was $27,000. Windwhirl issued additional shares of stock for $237,000, paid off a $196,000 bond issue recorded at par and paid $51,000 in dividends during the year. Calculate the net cash provided or (used)by financing activities.

Question

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Net cash used by financing activities is calculated as: Cash from issuing stock ($237,000) minus cash used to pay off bonds ($196,000) minus dividends paid ($51,000), resulting in a net cash use of $10,000.

Windwhirl Company Reported Net Income of $150,000 and a $5,000