Caustic Chemicals management identified the following cash flows as significant in their year end meeting with analysts: During the year Caustic repaid existing debt of $250,818 and raised additional debt capital of $693,120. It also repurchased stock in the open market for a total of $41,366. What is the net cash provided by financing activities?
400936
To calculate the net cash provided by financing activities, we need to take into account the cash flows related to debt repayment, debt raising, and stock repurchase.
Step 1: Add the cash inflows related to debt raising and stock repurchase:
$693,120 + $41,366 = $734,486
Step 2: Subtract the cash outflow related to debt repayment:
$734,486 - $250,818 = $483,668
Therefore, the net cash provided by financing activities for Caustic Chemicals is $483,668.
To find the net cash provided by financing activities, we need to calculate the total cash inflows and outflows related to financing activities.
In this case, the cash inflows are the additional debt capital raised, while the cash outflows are the debt repayment and stock repurchase.
1. Additional debt capital raised: $693,120
2. Debt repayment: $250,818
3. Stock repurchase: $41,366
To find the net cash provided by financing activities, we can subtract the cash outflows from the cash inflows:
Net cash provided by financing activities = Additional debt capital raised - Debt repayment - Stock repurchase
Net cash provided by financing activities = $693,120 - $250,818 - $41,366
Net cash provided by financing activities = $401,936
Therefore, the net cash provided by financing activities for Caustic Chemicals is $401,936.