Lucas Company recorded the following events last year: Repurchase by Lucas of it

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)

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Explanation / Answer

Lucas Company Cash Flow Statement Details Amt $ Cash Flow from Financing Activities Repurchase of Common Stock               (20,000) Dividends apid to company Stock holders               (60,000) 1 Total Cash Flow from Financing Activities $           (80,000) Answer B is correct Cash Flow from Investing Activities Sale of Long Term Investment                  45,000 Collection by Lucas of a Loan made to another Company                  25,000 Total Cash Flow from Investing Activities $             70,000 Answer C, is correct

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