During the year, Lady Liberty Corporation's Treasury Stock account increased $55,000 due to a cash purchase, cash dividends of $45,000 were paid and the company reported net income of $180,000. On the statement of cash flows (indirect method), Net cash used by financing activities is:

Question

Quizplus · Accepted Answer

The net cash used by financing activities includes the cash purchase of treasury stock and the payment of cash dividends. Therefore, it is $55,000 (treasury stock purchase) + $45,000 (dividends paid) = $100,000.

During the Year, Lady Liberty Corporation's Treasury Stock Account Increased