Use the Following Information to Calculate the Net Cash Provided

question 162

Short Answer

Use the following information to calculate the net cash provided or used by financing activities for the Brooks Corporation:
(a) Net income, $10,000
(b) Sold common stock for $4,000 cash
(c) Paid cash dividend of $3,000
(d) Paid bond payable, $8,000
(e) Purchased equipment for $12,000 cash

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Definitions:

End-of-Period Adjusting Entry

Journal entries made at the end of an accounting period to update the accounts and ensure revenues and expenses are recorded in the appropriate period.

Interest Revenue

Income earned from lending investments or extending credit, typically expressed in monetary terms.

Percent of Sales Method

A financial forecasting method that estimates various income statement and balance sheet lines as a percentage of projected sales.

Bad Debts Expense

The cost associated with accounts receivable that are not expected to be collected.