Rag Dolls' cash flow from financing activities during 2010 is:
A) $322,500 net cash provided by financing activities.
B) $172,500 net cash provided by financing activities.
C) $127,500 net cash provided by financing activities.
D) $375,000 net cash provided by financing activities.

Question

Quizplus · Accepted Answer

The cash flow statement shows that Rag Dolls had a net decrease in notes payable and long-term debt of $212,500 ($1,200,000 - $987,500) and a net increase in common stock of $385,000. Therefore, the net cash provided by financing activities is $172,500 ($385,000 - $212,500).

Rag Dolls' Cash Flow from Financing Activities During 2010 Is