Question

Wofford Company provides the following information related to its investing and financing activities for the current year:
Cash receipts:
Sale of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000
Sale of equipment (at $34,000 loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,000
Sale of land (at $50,000 gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000
Cash payments:
Purchase of equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $178,000
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000
Retirement of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,500
Dividends on preferred and common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
a. Calculate the net amount of cash provided by or used for investing activities for the year.
b. What impact, if any, do the following facts have on your calculation?
(1) Equipment was sold at a loss, and
(2) Land was sold at a gain.
c. Briefly explain your decision to exclude any of the items listed above if they were not included in your calculation in part a.



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  • CreatedApril 17, 2014
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