In Preparing a Company's Statement of Cash Flows for the Year

question 9

Multiple Choice

In preparing a company's statement of cash flows for the year just ended, the following information is available: $$\begin{array} { | l | r | } \hline \text { Loss on the sale of equipment } & \$ 14,000 \\\hline \text { Purchase of equipment } & 225,000 \\\hline \text { Proceeds from the sale of equipment } & 106,000 \\\hline \text { Repayment of outstanding bonds } & 87,000 \\\hline \text { Purchase of treasury stock } & 25,000 \\\hline \text { Issuance of common stock } & 96,000 \\\hline \text { Purchase of land } & 115,000 \\\hline \text { Increase in accounts receivable during the year } & 33,000 \\\hline \text { Decrease in accounts payable during the year } & 75,000 \\\hline \text { Payment of cash dividends } & 35,000 \\\hline\end{array}$$ Net cash flows from financing activities for the year were:

• A) $147,000 of net cash used.
• B) $26,000 of net cash used.
• C) $347,000 of net cash used.
• D) $51,000 of net cash used.
• E) $340,000 of net cash used.

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