MG Co. had the following transactions during 2018: 1.Issued $50,000 of par value common stock for cash. 2. Repaid a 4 year note payable in the amount of $22,000. 3. Acquired building by issuing common stock of par value $50,000. 4. Declared and paid a cash dividend of $7,000. 5. Sold a long-term investment (cost $3,000) for cash of $6,000. 6. Acquired an investment in IGG stock for cash of $10,000. What is the net cash provided by financing activities? $21,000 $67,000 $28,000 $0
Ans: $21,000
Statement showing net cash flow from financing Activity
Transaction |
Reason |
Amount $ |
1.Issued of common stock for cash |
Finance Activity cash inflow |
50,000 |
2. Repaid a 4 year note payable |
Finance Activity cash out flow |
-22,000 |
3. Acquired building by issuing common stock |
Investing Activity |
|
4. Declared and paid a cash dividend |
Finance Activity cash out flow |
-7,000 |
5. Sold a long-term investment |
Investing Activity |
|
6. Acquired an investment in IGG stock for cash |
Investing Activity |
|
Net cash flow from Financing Activity |
$21,000 |
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