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The following T-account is a summary of the cash account of Alown Company.

\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{4}{|c|}{Cash (Summary Form)} \\
\hline Balance, Jan. 1 & 8,000 & & \\
\hline Receipts from customers & 364,000 & Payments for goods & 200,000 \\
\hline Dividends on stock investments & 6,000 & Payments for operating expenses & 140,000 \\
\hline Proceeds from sale of equipment & 36,000 & Interest paid & 10,000 \\
\hline Proceeds from issuance of bonds payable & 300,000 & Taxes paid & 8,000 \\
\hline & & Dividends paid & 40,000 \\
\hline Balance, Dec. 31 & 316,000 & & \\
\hline
\end{tabular}

What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows? (Show amounts that decrease cash flow with either a minus sign, e.g., -15,000, or in parentheses, e.g., [tex]\((15,000)\)[/tex]).

Net cash [tex]$\square$[/tex] by financing activities: [tex]$\square$[/tex]



Answer :

GinnyAnswer
To determine the amount of net cash provided (used) by financing activities, we need to identify the cash flows associated with financing activities in the cash account summary. Financing activities generally include transactions involving equity (such as dividends paid) and debt (such as proceeds from issuing bonds payable). Here's the detailed, step-by-step approach:

1. Identify the cash inflows from financing activities:
- Proceeds from bonds payable: [tex]\( \$300,000 \)[/tex]

2. Identify the cash outflows from financing activities:
- Dividends paid: [tex]\( \$40,000 \)[/tex]

3. Calculate the net cash provided (used) by financing activities:
- Add the cash inflows from financing activities: [tex]\( \$300,000 \)[/tex]
- Subtract the cash outflows from financing activities: [tex]\( \$40,000 \)[/tex]

Using these amounts, the net cash provided (used) by financing activities can be calculated as follows:
[tex]\[ \text{Net cash provided (used) by financing activities} = \$300,000 - \$40,000 = \$260,000 \][/tex]

Thus, the answer is:
[tex]\[ \boxed{Net\ cash\ provided\ by\ financing\ activities\ is\ \$260,000} \][/tex]

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