Paxson Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Paxson Mining Co. for 2009 and 2008 are provided below.
The following additional data were provided:
1) Dividends for the year 2009 were $96,000.
2) During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
3) All depreciation expense is in the selling expense category.
relate to a statement of cash flows for the year ended December 31, 2009, for Paxson Mining Company.
-The net cash provided (used) by financing activities is
A) $(120,000).
B) $24,000.
C) $(216,000).
D) $96,000.

Question

Paxson Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Paxson Mining Co. for 2009 and 2008 are provided below.
   The following additional data were provided:
1) Dividends for the year 2009 were $96,000.
2) During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
3) All depreciation expense is in the selling expense category.
 relate to a statement of cash flows for the year ended December 31, 2009, for Paxson Mining Company.
-The net cash provided (used) by financing activities is
A) $(120,000). 
B) $24,000. 
C) $(216,000). 
D) $96,000.

Quizplus · Accepted Answer

($96,000) - ($120,000) = ($216,000).