Question

Shepherd Industries had the following cash flows by major categories during the curtem LO13-4 EXERCISE 13.14 Cash provided by: Cash Flows from Financing Receipts from customers $560.000 Activities Sale of bonds. 420000 Sale of treasury stock 52.000 56,000 Interest and dividends received 236,000 Sale of equipment (at a $56,000 loss) Cash used for: $145,000 Payments to employees 190,000 Payments to purchase inventory 60,000 Dividends on common stock 20,000 Purchase of treasury stock. 82,000 Interest expense Briefly justify why you excluded any of these items in your calculation in part a Briefly explain your treatment of interest expense in your calculation in part a. Calculate the net amount of cash provided by or used for financing activities for the year. a. b. c.

Answer 1

(a)	Net cash provide (used) by Financing activities
	Shepherd Industries
	Statement of cash flow
	Cash flow from financing activities
	Sale of bonds	$420,000
	Sale of Treasury stock	$52,000
	Payment of dividends on common stock	($60,000)
	Purchase of Treasury Stock	($20,000)
	Net Cash flow from financing activities	$392,000
(b)	Other than above items which are not included are to be either
	Operating activities or Investing activities
(c)	Interest expense should be reported in operating activities