Question
The account balance information for Miller Company at the end of 2016 and 2017 and related 2017 activities are presented below: December 31 Liabilities and
December 31 | |||
Liabilities and Equities: | 2017 | 2016 | |
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 2017 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 2017 were a result of net income and cash dividends. | |
Other than the bond conversion, the only transaction affecting bonds payable during 2017 was the issue for cash at face value of new bonds payable. | |
Net income for the year 2017 was $200,000. |
Required: Compute the net cash provided by financing activities for the Miller Company using the visual inspection method.
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