Use the Following Information for Questions 22-23

question 18

Multiple Choice

Use the following information for questions 22-23.
ecaHecaRoss Corp.'s transactions for calendar 2020 included the following:
1. Acquired 50% of Lennox Ltd.'s common shares for $ 90,000 cash.
2. Issued 5,000 preferred shares in exchange for land with a fair value of $ 160,000.
3. Issued 11% bonds, par value $ 200,000, due 2020, for $ 196,000 cash.
4. Purchased a patent for $ 110,000 cash.
5. Borrowed $ 90,000 from Bank A.
6. Paid $ 60,000 toward a bank loan with Bank B.
7. Sold long-term investments for $ 398,000.
-The cash provided by financing activities in 2020 was

• A) $ 136,000.
• B) $ 226,000.
• C) $ 286,000.
• D) $ 296,000.

---

Definitions:

APR

The Annual Percentage Rate, which reflects the cost of borrowing on a yearly basis and includes interest and other charges.

Mortgage

A loan secured by real estate property, commonly used to purchase a home.

Prepaid Interest

Interest starts accruing (building) at the beginning of each month and continues throughout the month; prepaid interest at the closing is the amount of mortgage interest due to cover the time from the closing date to when the first mortgage payment is due.

Down Payment

The upfront money applied to a purchase that is made using a loan (credit).