Use the Indirect Method of Preparing a Statement of Cash

question 184

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:

Hedge Transaction

A financial transaction designed to reduce the risk of adverse price movements in an asset.

Spot Rates

The prevailing price for a specific currency that can be traded immediately.

Journal Entries

Journal entries are records of financial transactions in accounting, documented in chronological order, indicating accounts affected, amounts, and a brief description of the transaction.

Forward Rate

An agreed-upon price for a currency or asset to be exchanged at a future date, used for hedging or speculation.