Question

Hawk Co. provided the following information on selected transactions during 2021:

Purchase of land by issuing bonds      $1,300,000

Proceeds from issuing bonds                 2,500,000

Purchases of inventory                          3,800,000

Dividends paid to common stockholders 340,000

Proceeds from issuing preferred stock 1,600,000

Proceeds from sale of land                       200,000

The net cash provided (used) by financing activities during 2021 is ________

Answer 1

Cash flows from financing activities:
Proceeds from issuing bonds	2,500,000
Proceeds from issuing preferred stock	1,600,000
Dividends paid to common stockholders	(340,000)
Net cash provided (used) by financing activities	3,760,000
Investing and financing activity not affecting cash:
Purchase of land by issuing bonds	1,300,000