Oklahoma Corp

question 4

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,$85,000
2) Long-Term Notes Payable,ending balance,$75,000
3) Common Stock,beginning balance,$3000
4) Common Stock,ending balance,$28,000
5) Retained Earnings,beginning balance,$76,000
6) Retained Earnings,ending balance,$118,000
7) Treasury Stock,beginning balance,$5500
8) Treasury Stock,ending balance,$10,100
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 $25,000 on new long-term notes payable.
13) Net income for the year was $49,000.
14) Assume all dividends declared during the year were paid.
What is the net cash provided by financing activities?

• A) $20,400
• B) $13,400
• C) ($10,000)
• D) $3400

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Definitions:

Operating Activities Section

A component of the cash flow statement showing cash inflows and outflows related to the primary business activities.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.

Capital Asset

An asset of significant value owned by a business or individual for a long period, usually used in the production of goods or services.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments that are not considered to be cash equivalents.