In preparing Titan Inc.'s statement of cash flows for the year ended December 31, 2015, the following amounts were available: $$\begin{array} { l r }
\text { Collect note receivable } & \$ 410,000 \
\text { Issue bonds payable } & 426,000 \
\text { Purchase treasury stock } & 200,000
\end{array}$$ What amount should be reported on Titan, Inc's statement of cash flows for financing activities?
A) $ 16,000
B) $836,000
C) $226,000
D) $210,000

Question

In preparing Titan Inc.'s statement of cash flows for the year ended December 31, 2015, the following amounts were available: $$\begin{array} { l r } 
\text { Collect note receivable } & \$ 410,000 \
\text { Issue bonds payable } & 426,000 \
\text { Purchase treasury stock } & 200,000
\end{array}$$ What amount should be reported on Titan, Inc's statement of cash flows for financing activities?
A) $ 16,000
B) $836,000
C) $226,000
D) $210,000

Quizplus · Accepted Answer

Financing activities include cash flows related to borrowing and repaying debt, issuing and repurchasing stock. The cash inflow from issuing bonds payable is $426,000, and the cash outflow from purchasing treasury stock is $200,000. The net cash flow from financing activities is $426,000 - $200,000 = $226,000.

In Preparing Titan Inc What Amount Should Be Reported on Titan, Inc's Statement of Year