Financing Activities Section. The following information is from the noncurrent liabilities and owners’ equity portions of System, Inc.’s balance sheet.
The following activities occurred during 2012:
o Paid principal amount of $70,000 for long-term notes payable
o Received $40,000 for long-term notes payable
o Paid principal amount on bonds totaling $15,000 (Hint: Solve for the proceeds received from the issuance of bonds.)
o Issued common stock for $100,000 cash (Hint: Solve for the amount paid for the repurchase of stock.) o Earned net income totaling $170,000
o Paid cash dividends totaling $20,000 Required:
g. Prepare the financing activities section of the statement of cash flows for System, Inc., for the year ended December 31, 2012. Use the format presented in.
h. How much cash was provided by (used by) financing activities? Briefly describe what this amount tells us about the company