Use the following cash flow data of Haven Hardware for the year ended December 31, 2008.
-What is the net cash provided by or used in financing activities of Haven Hardware?
A) ($10,000)
B) ($120,000)
C) $10,000
D) $120,000

Question

Use the following cash flow data of Haven Hardware for the year ended December 31, 2008. 
-What is the net cash provided by or used in financing activities of Haven Hardware?
A) ($10,000) 
B) ($120,000) 
C) $10,000 
D) $120,000

Quizplus · Accepted Answer

The net cash provided by or used in financing activities is calculated by adding proceeds from issuing long-term debt, proceeds from issuing stock, and any cash paid for dividends or repurchasing stock. In this case, Haven Hardware had proceeds from issuing long-term debt of $50,000 and proceeds from issuing stock of $60,000, for a total of $110,000 in cash inflows from financing activities. However, they also paid cash dividends of $230,000 and repurchased stock for $0. Therefore, the net cash provided by or used in financing activities is ($120,000) or option B.

Use the Following Cash Flow Data of Haven Hardware for the Year