Trudeau Inc. is a private company reporting under ASPE. The following selected account balances were reported in Trudeau Inc.’s financial statements at year end: 

Additional information: 

1. Purchased $75,000 of equipment for $10,000 cash and a note payable for the remainder. 

2. Equipment was also sold during the year. 

3. Sold a building that originally cost $50,000. 

4. Used cash to purchase land and a building. 

5. Mortgage payments and notes payable payments included interest and principal amounts. 

6. Common shares were issued for cash. 

Instructions 

a. Determine the amount of any cash inflows or outflows related to investing activities in 2024. 

b. What was the amount of profit reported by Trudeau Inc. in 2024? 

c. Determine the amount of any cash inflows or outflows related to financing activities in 2024.  

d. Identify and determine the amount of any noncash financing activities in 2024. 

e. Calculate the cash provided by operating activities. 

Is it unfavorable for a company to have a net cash outflow from investing activities?

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Cash Building Equipment Land Accumulated depreciation-building Accumulated depreciation-equipment Dividends payable Mortgage payable Notes payable Common shares: 46,000 shares in 2024; 40,000 in 2023 Retained earnings Cash dividends declared Depreciation expense-buildings Depreciation expense-equipment Gain on sale of equipment Loss on sale of building Interest expense 2024 $ 22,125 850,000 393,000 100,000 307,500 124,000 6,250 545,000 340,000 807,000 200,000 25,000 25,000 49,125 1,000 10,000 48,250 2023 $ 10,000 750,000 340,000 60,000 300,000 94,000 2,500 585,000 310,000 685,000 100,000 10,000 42,500 27,000 0 0 44,750