Use the information above to answer the following question.The company would report net cash provided by (used in)financing activities of:
A)$(2,500).
B)$2,000.
C)$5,000.
D)$6,000.

Question

Use the information above to answer the following question.The company would report net cash provided by (used in)financing activities of: 
A)$(2,500). 
B)$2,000. 
C)$5,000. 
D)$6,000.

Quizplus · Accepted Answer

Net cash provided by (used in) financing activities is calculated by adding the cash inflows from financing activities (in this case, $4,500 from the issuance of common stock) and subtracting the cash outflows from financing activities (in this case, $2,500 of dividends paid). Therefore, net cash provided by financing activities would be ($4,500 - $2,500) = $2,000.

Use the Information Above to Answer the Following Question