The Natural Company's cash balance at December 31, 2019, was $150,000. The following information was reported on the company's statement of cash flows for 2020:

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The Natural Company's Statement of Cash Flows would report Cash Flows from Financing Activities totaling:

Question

The Natural Company's cash balance at December 31, 2019, was $150,000. The following information was reported on the company's statement of cash flows for 2020:

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The Natural Company's Statement of Cash Flows would report Cash Flows from Financing Activities totaling:

Quizplus · Accepted Answer

Cash flows from financing activities include the issuance of long-term debt and the repayment of long-term debt, as well as the issuance of stock and the payment of dividends. 
From the given information, the company had no long-term debt or stock transactions during the year. 
So, the only financing activity reported in the statement of cash flows was the payment of dividends of $25,000. 
Therefore, the Cash Flows from Financing Activities would total $25,000, which is option B.

The Natural Company's Cash Balance at December 31, 2019, Was