Calvin Company Provided the Following Information During 2017 How Much Is 'Net Cash Provided by Financing Activities' During

question 49

Multiple Choice

Calvin Company provided the following information during 2017:
$\begin{array}{lr}\text { Purchase of land by issuing bonds } & \$ 550,000 \\\text { Proceeds from issuing long-term debt } & 300,000 \\\text { Dividends paid to shareholders } & 120,000 \\\text { Proceeds from issuing stock } & 300,000 \\\text { Proceeds from sale of building } & 360,000 \\\text { Purchases of inventories } & 800,000 \\\text { Purchase of treasury stock } & 430,000\end{array}$

How much is 'net cash provided by financing activities' during 2017?

• A)$(500,000)
• B)$550,000
• C)$50,000
• D)$600,000

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Definitions:

Accounting Profit

The difference between total monetary revenue and total monetary costs, excluding the consideration of opportunity costs.

Explicit Costs

These are the direct, clear expenses related to business operations, such as salaries, utilities, and rent, that are easily quantifiable.

Accounting Profit

The difference between the total revenue and explicit costs of a firm, not accounting for implicit costs.

Economic Profit

The variance between a company's overall incomes and its combined explicit and implicit expenses.