Mars chemicals company uses the indirect method to prepare its statement of cash flows. refer to the following portion of the comparative balance sheet: mars chemicals company comparative balance sheet december 31, 2017 and 2016 2016 2015increase/(decrease) common stock $32,000 $2,400 $29,600 retained earnings 155,000 154,000 1,000 treasury stock (8,200)(5,000) (3,200) total equity $178,800 $151,400 $27,400 net income for the year was $57,000.

which of the following statements is true of taylor's statement of cash flows for 2016?

a. the company issued stocks for $32,000.
b. the net cash flow from financing activities is $178,800.
c. the company declared $56,000 as dividends.
d. the company purchased treasury stock for$8,200.

C. The company declared $56,000 as dividends.

Explanation:

C. The company declared $56,000 as dividends: is correct because the retained Earnings increased in 2016 is $1,000, while net income for the year was $57,000; it means that the company declared dividend for $56,000 (= 57,000 – 1,000)

A. The company issued stocks for $32,000: is wrong because the increase in common Stock is $29,600 only.

B. The net cash flow from financing activities is $178,800: is wrong because financing activities are those related debt, equity and dividend; and from all above only dividend of $56,000 declared; common stock issued in year: $29,600; treasury Stock issued in year $3,200; then net cash flow from financing activities is negative $29,600 = (29,600- 3,200-56,000)

D. The company purchased treasury stock for$8,200: is wrong because the increase in Treasury Stock is $3,200 only.

answer; work samples;

answer; niosh, the national institute for occupational safety and health;