In Rooney Company, Treasury Shares increased $20,000 from a cash purchase, and Retained Earnings increased $80,000 as a result of net income of $124,000 and cash dividends paid of $44,000. Net cash used by financing activities is:

Question

Quizplus · Accepted Answer

The increase in Treasury Shares is a financing activity that used $20,000 of cash.

To calculate net cash used by financing activities, we need to add the increase in Treasury Shares to the cash dividends paid, which results in a total of $64,000 ($20,000 + $44,000).

Therefore, the correct answer is D, $64,000.

In Rooney Company, Treasury Shares Increased $20,000 from a Cash