The Following Data Are Available for Cole Company

question 34

Multiple Choice

The following data are available for Cole Company. Increase in accounts payable $200,000
Increase in bonds payable 500,000
Sale of investments 250,000
Issuance of ordinary shares 300,000
Payment of cash dividends 150,000
Net cash provided by financing activities is:

• A) $450,000.
• B) $650,000.
• C) $800,000.
• D) $850,000.

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Definitions:

Bonds Payable

Long-term debt instruments issued by corporations or governments, promising to pay the bondholder a specified sum of money at future dates.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported instead of adjustments to net income.

Sales Revenue

The total amount of money received by a company from selling goods or services before any expenses are deducted.

Balance Sheet Accounts

Accounts that are represented on the balance sheet, including assets, liabilities, and equity accounts.