Spade Company Recorded the Following Events Last Year: on the Statement

question 69

Multiple Choice

Spade Company recorded the following events last year: On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities.
-Based solely on the information above,the net cash provided by (used in) financing activities on the statement of cash flows would be:

• A)$41,000
• B)$(85,000)
• C)$947,000
• D)$(67,000)

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Definitions:

Stockholders' Equity

The residual interest or ownership in the assets of a corporation after deducting liabilities, often referred to as shareholders' equity.

Stock Dividend

A form of dividend payment made in shares of stock rather than cash, often signaling a company's growth prospects or lack of sufficient cash flow.

Common Stock Dividends Distributable

Amounts declared by a company to be paid as dividends to holders of its common stock, recorded as a liability until paid.

Stock Split

An action by a company to divide its existing shares into multiple shares to lower the trading price of the stock, making it more accessible to investors.