Saints Ltd is preparing a statement of cash flows for the year ended 30 June 2014.You are the accountant of the entity and have collected the following data:
$$\begin{array} { | l | r | }
\hline \text { Gain on sale of equipment } & 12000 \
\hline \text { Proceeds from sale of equipment } & 20000 \
\hline \text { Purchase of government bonds (dated 30 June 2014, face value of \$400 000) } & 360000 \
\hline \text { Dividends declared } & 90000 \
\hline \text { Dividends paid } & 76000 \
\hline \text { Proceeds from issue of share capital } & 150000 \
\hline
\end{array}$$
What is the amount of net cash used in investing and financing activities respectively?
A) $20 000; ($286 000)
B) $(340 000); $74 000
C) $(348 000); ($22 000)
D) $(380 000); $74 000

Question

Saints Ltd is preparing a statement of cash flows for the year ended 30 June 2014.You are the accountant of the entity and have collected the following data:
$$\begin{array} { | l | r | } 
\hline \text { Gain on sale of equipment } & 12000 \
\hline \text { Proceeds from sale of equipment } & 20000 \
\hline \text { Purchase of government bonds (dated 30 June 2014, face value of \$400 000) } & 360000 \
\hline \text { Dividends declared } & 90000 \
\hline \text { Dividends paid } & 76000 \
\hline \text { Proceeds from issue of share capital } & 150000 \
\hline
\end{array}$$
What is the amount of net cash used in investing and financing activities respectively?
A) $20 000; ($286 000)
B) $(340 000); $74 000
C) $(348 000); ($22 000)
D) $(380 000); $74 000

Quizplus · Accepted Answer

The net cash used in investing activities is calculated as proceeds from sale of equipment ($20,000) minus purchase of government bonds ($360,000), resulting in $(340,000). The net cash from financing activities is proceeds from issue of share capital ($150,000) minus dividends paid ($76,000), resulting in $74,000.

Saints Ltd Is Preparing a Statement of Cash Flows for the Year