Burgett Corporation's balance sheet and income statement appear below: Cash dividends were $41. The company sold equipment for $15 that was originally purchased for $4 and that had accumulated depreciation of $4.
-The net cash provided by (used by) financing activities for the year was:
A) ($1)
B) ($41)
C) $2
D) ($40)

Question

Burgett Corporation's balance sheet and income statement appear below:   Cash dividends were $41. The company sold equipment for $15 that was originally purchased for $4 and that had accumulated depreciation of $4.
-The net cash provided by (used by) financing activities for the year was:
A) ($1) 
B) ($41) 
C) $2 
D) ($40)

Quizplus · Accepted Answer

The net cash used in financing activities is calculated by adding the increase in cash from issuing stock and the decrease in cash from paying dividends. In this case, the company issued $2 of stock and paid $42 of dividends, resulting in a net cash used of $40.

Burgett Corporation's Balance Sheet and Income Statement Appear Below