Question
Stansfield Corporation had the following activities in 2012. 1. Payment of accounts payable: $770,000 2. Issuance of common stock: $250,000 3. Payment of dividends: $350,000
Stansfield Corporation had the following activities in 2012.
1. Payment of accounts payable: $770,000
2. Issuance of common stock: $250,000
3. Payment of dividends: $350,000
4. Collection of note receivable: $100,000
5. Issuance of bonds payable: $510,000
6. Purchase of treasury stock: $46,000
Compute the amount Stansfield should report as net cash provided by financing activities in its 2012 statement of cash flows.
...I came up with $464,000, but that was "incorrect." To get that number, I did not include $770,000 in my equation, because I believe that is an operating activity. I computed $250,000 - 350,000 + 100,000 + 510,000 - 46,000 = $464,000. Any idea what I'm doing wrong?
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