The account balance information for Miller Company at the end of 2019 and 2020 and related 2020 activities are presented below: December 31 Liabilities and Equities: 2020 2019 Accounts Payable $250,000 $230,000 Deferred Tax Liability, noncurrent 80,000 60,000 Bonds Payable, long-term 500,000 200,000 Common Stock, $1 par 110,000 80,000 Additional Paid-in Capital 423,000 130,000 Retained Earnings 470,000 390,000 Total Liabilities and Equities $1,833,000 $1,090,000 Additional information for 2020 activities: Bonds payable in the amount of $125,000 were converted into 12,000 shares of common stock. Additional common stock was issued for cash of $11 per share. The only changes in retained earnings in 2020 were a result of net income and cash dividends. Other than the bond conversion, the only transaction affecting bonds payable during 2020 was the issue for cash at face value of new bonds payable. Net income for the year 2020 was $200,000. Required: Compute the net cash provided by financing activities for the Miller Company using the visual inspection method. Use the minus sign to indicate cash outflow.
The account balance information for Miller Company at the end of 2019 and 2020 and related 2020 activities are presented below: December 31 Liabilities and Equities: 2020 2019 Accounts Payable $250,000 $230,000 Deferred Tax Liability, noncurrent 80,000 60,000 Bonds Payable, long-term 500,000 200,000 Common Stock, $1 par 110,000 80,000 Additional Paid-in Capital 423,000 130,000 Retained Earnings 470,000 390,000 Total Liabilities and Equities $1,833,000 $1,090,000 Additional information for 2020 activities: Bonds payable in the amount of $125,000 were converted into 12,000 shares of common stock. Additional common stock was issued for cash of $11 per share. The only changes in retained earnings in 2020 were a result of net income and cash dividends. Other than the bond conversion, the only transaction affecting bonds payable during 2020 was the issue for cash at face value of new bonds payable. Net income for the year 2020 was $200,000. Required: Compute the net cash provided by financing activities for the Miller Company using the visual inspection method. Use the minus sign to indicate cash outflow.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The account balance information for Miller Company at the end of 2019 and 2020 and related 2020 activities are presented below:
| December 31 | ||
| Liabilities and Equities: | 2020 | 2019 |
| Accounts Payable | $250,000 | $230,000 |
| 80,000 | 60,000 | |
| Bonds Payable, long-term | 500,000 | 200,000 |
| Common Stock, $1 par | 110,000 | 80,000 |
| Additional Paid-in Capital | 423,000 | 130,000 |
| 470,000 | 390,000 | |
| Total Liabilities and Equities | $1,833,000 | $1,090,000 |
Additional information for 2020 activities:
- Bonds payable in the amount of $125,000 were converted into 12,000 shares of common stock.
- Additional common stock was issued for cash of $11 per share.
- The only changes in retained earnings in 2020 were a result of net income and cash dividends.
- Other than the bond conversion, the only transaction affecting bonds payable during 2020 was the issue for cash at face
value of new bonds payable. - Net income for the year 2020 was $200,000.
Required:
Compute the net cash provided by financing activities for the Miller Company using the visual inspection method. Use the minus sign to indicate
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