Question

Question #5 (10 marks) Partial B/S and I/S information End Land $ 336,000 Building and equipment 1,430,000 Acc. Dep (653,000) Beg $ 250,000 1,628,000 (518,000) $ 850,000 $ Common stock 800,000 R/E 168,000 76,000 I/S NI fir the year was $182,000 Additional information Equipment with a cost of $63,000 and a book-value of $40,000 was sold for $57,000. Cash dividends of $?? were paid during the year. Required: Prepare the (a) CFI (6 marks) and (b) CFF (4 marks) sections of the cash flow statement.

Answer 1

1. Cash Flow from Investing Activities -

Cash Flow from Investing Activities Sale of Equipment $ 57,000 Purchase of Land $ (86,000) Purchase of Equipment $ (261,000) Total Cash Flow from Investing Activities $ (290,000)

2. Cash Flow from Financing Activities -

Cash Flow from Financing Activities Dividend Paid $ (90,000) Issurance of Common Stock $ 50,000 Net Cash Flow from Financing Activities $ (40,000)