Lucas Company recorded the following events last year: Repurchase by Lucas of it
ID: 2460595 • Letter: L
Question
Lucas Company recorded the following events last year:
Repurchase by Lucas of its own common stock .... .... ... ..... $20,000
Sale of long-term investment ... ... ... .... ... ... ... ... ... ... .... $45,000
Interest paid to lenders ... ... ... ... ... .. ... ... .. ... .. ... ... ... ... $5,000
Dividends paid to the company's stockholders ... ... ... ... ..... $60,000
Collection by Lucas of a loan made to another company ... ....$25,000
Payment of taxes to governmental bodies ... ... ... ... ... .... .. $15,000
1. Based solely on the information above, the net cash provided by (used in) financing activities on the statement of cash flows would be? A) $85,000 B) $(80,000) C) $(145,000) D) $170,000
2. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be? A) $(5,000) B) $10,000 C) $70,000 D) $(30,000)
SHOW WORK
Explanation / Answer
1) Net cash provided by financing activities
Repurchase by Lucas of its own common stock .... .... ... ..... $20,000 (negative cash flow)
Dividends paid to the company's stockholders ... ... ... ... ..... $60,000 (Negative cash flow)
Net negative cash flow from financing activities - ($80,000) (B)
2) Net cash from Investing activities
Sale of long-term investment ... ... ... .... ... ... ... ... ... ... .... $45,000 (Positive cash flow)
Collection by Lucas of a loan made to another company ... ....$25,000 (Positive cash flow)
Total cash flow from investment activity - $70,000 (Positive) (C)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.