Problem

Cash Flows from Financing ActivitiesShepherd Industries had the following cash flows by ma...

Cash Flows from Financing Activities

Shepherd Industries had the following cash flows by major categories during the current year:

Cash provided by:

 

Receipts from customers

$560,000

Sale of bonds

420,000

Sale of treasury stock

52,000

Interest and dividends received

56,000

Sale of equipment (at a $56,000 loss)

236,000

Cash used for:

 

Payments to employees

$145,000

Payments to purchase inventory

190,000

Dividends on common stock

60,000

Purchase of treasury stock

20,000

Interest expense

82,000

a. Calculate the net amount of cash provided by or used for financing activities for the year.


b. Briefly justify why you excluded any of the above items in your calculation in part a.


c. Briefly explain your treatment of interest expense in your calculation in part a.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search