Marbry Corporation's balance sheet and income statement appear below: Cash dividends were $21.The company did not issue any bonds or repurchase any of its own common stock during the year.The net cash provided by (used in)financing activities for the year was:
A)$4
B)($22)
C)($5)
D)($21)

Question

Marbry Corporation's balance sheet and income statement appear below:   Cash dividends were $21.The company did not issue any bonds or repurchase any of its own common stock during the year.The net cash provided by (used in)financing activities for the year was:
A)$4 
B)($22) 
C)($5) 
D)($21)

Quizplus · Accepted Answer

The net cash provided by (used in) financing activities can be calculated using the change in cash balance from the previous year to the current year. From the balance sheet, we can see that the cash balance decreased from $50 to $27, a decrease of $23. This decrease in cash is due to the payment of $21 in cash dividends, which leaves a remaining decrease of $2. Since the company did not issue any bonds or repurchase its own stock during the year, the only other financing activity that could have caused this decrease is the payment of $2 in interest on any outstanding debt. Therefore, the net cash provided by (used in) financing activities is ($23 - $2) = ($22). Financing activities: 11ea7998_5c11_7855_911b_ddb7f8350133_TB2627_00_TB2627_00

Marbry Corporation's Balance Sheet and Income Statement Appear Below