Joy Elle's Vegetable Market had the following transactions during 2010:
1) Issued $50,000 of par value common stock for cash.
2) Repaid a 6 year note payable in the amount of $22,000.
3) Acquired land by issuing common stock of par value $100,000.
4) Declared and paid a cash dividend of $2,000.
5) Sold a long-term investment (cost $63,000) for cash of $6,000.
6) Acquired an investment in IBM stock for cash of $12,000.
What is the net cash provided by financing activities?
A) $26,000
B) $50,000
C) $28,000
D) $18,000

Question

Quizplus · Accepted Answer

Financing activities include issuing stock and repaying debt. Cash inflow from issuing stock is $50,000, and cash outflow from repaying the note payable is $22,000. Therefore, the net cash provided by financing activities is $50,000 - $22,000 = $28,000.

Joy Elle's Vegetable Market Had the Following Transactions During 2010