Answered

The following T-account is a summary of the Cash account of Bramble Company.

\begin{tabular}{lr|lr}
\hline
\multicolumn{4}{c}{ Cash (Summary Form) } \\
\hline
Balance, Jan. 1 & 8,600 & & \\
Receipts from customers & 365,800 & Payments for goods & 201,500 \\
Dividends on stock investments & 5,600 & Payments for operating expenses & 140,400 \\
Proceeds from sale of equipment & 36,200 & Interest paid & 10,200 \\
Proceeds from issuance of & & Taxes paid & 8,400 \\
bonds payable & 500,100 & Dividends paid & 59,800 \\
\hline
Balance, Dec. 31 & 496,000 & & \\
& & & \\
\end{tabular}

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

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



Answer :

GinnyAnswer
To find the net cash provided (used) by financing activities, we need to reflect on the financing transactions mentioned in the T-account. Financing activities include transactions involving long-term liabilities and equity. For Bramble Company, we focus on:

1. Proceeds from the issuance of bonds payable
2. Dividends paid

Based on the provided T-account, here are the detailed steps to calculate the net cash provided (used) by financing activities:

1. Proceeds from issuance of bonds payable: This is a cash inflow from financing activities.
- Amount: \[tex]$500,100 2. Dividends paid: This is a cash outflow from financing activities. - Amount: \$[/tex]59,800

Now, we need to calculate the net cash provided (used) by financing activities by adding the proceeds from bonds payable and subtracting the dividends paid:

[tex]\[ \text{Net cash provided (used) by financing activities} = \$500,100 + (- \$59,800) \][/tex]
[tex]\[ \text{Net cash provided (used) by financing activities} = \$500,100 - \$59,800 \][/tex]
[tex]\[ \text{Net cash provided (used) by financing activities} = \$440,300 \][/tex]

Therefore, the net cash provided by financing activities is \[tex]$440,300. So, the final statement would be: Net cash provided by financing activities \$[/tex]440,300.