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Oklahoma Corp

question 159

Multiple Choice

Oklahoma Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2018:
1) Long-Term Notes Payable, beginning balance, $84,000
2) Long-Term Notes Payable, ending balance, $99,000
3) Common Stock, beginning balance, $3400
4) Common Stock, ending balance, $26,000
5) Retained Earnings, beginning balance, $78,000
6) Retained Earnings, ending balance, $120,000
7) Treasury Stock, beginning balance, $5800
8) Treasury Stock, ending balance, $10,600
9) No stock was retired.
10) No treasury stock was sold.
11) During 2018, the company repaid $35,000 of long-term notes payable.
12) During 2018, the company borrowed $27,000 on new long-term notes payable.
13) Net income for the year was $50,000.
14) Assume all dividends declared during the year were paid.
What is the net cash provided by financing activities?

Definitions:

Economic Efficiency

A situation where all resources are allocated in a way that maximizes the total benefit to society or minimizes waste.

External Cost

A cost that a transaction or activity imposes on a party who is not involved in the transaction, often not reflected in market prices.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental, health, and safety concerns of public and private actions.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction.