Use the Indirect Method of Preparing a Statement of Cash

question 104

Short Answer

Use the indirect method of preparing a statement of cash flows to answer the question.
Ending balances for Sunday Hut are listed below:

Net income for this year was $97,000 and dividends of $24,000 were declared and paid during this year.
What was the net cash provided by financing activities?

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment in the business or to pay debt, rather than distributed to shareholders.

Payment

The act of giving or transferring money or monetary value in exchange for goods, services, or to fulfill a legal obligation.

Shares

Units of ownership interest in a corporation or financial asset, providing an entitlement to a portion of the profit.

Preemptive Rights

Rights that allow existing shareholders in a corporation the first chance to buy new shares before the public, to maintain their proportionate ownership.