The account balance information for Miller Company at the end of 2019 and 2020 and related 2020 activities are presented below: December 31Liabilities and Equities:20202019Accounts Payable$250,000$230,000Deferred Tax Liability, noncurrent80,00060,000Bonds Payable, long-term500,000200,000Common Stock, $1 par110,00080,000Additional Paid-in Capital423,000130,000Retained Earnings470,000390,000 Total Liabilities and Equities$1,833,000$1,090,000Additional 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.

Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Answered: The account balance information for…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 25E

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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
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.

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