Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise):

Question:

Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise):

a. A building with a book value of $400,000 was sold for $500,000.

b. Additional common stock was issued for $160,000.

c. Dristell purchased its own common stock as treasury stock at a cost of $75,000.

d. Land was acquired by issuing a 6%, 10-year, $750,000 note payable to the seller.

e. A dividend of $40,000 was paid to shareholders.

f. An investment in Fleet Corp.’s common stock was made for $120,000.

g. New equipment was purchased for $65,000.

h. A $90,000 note payable issued three years ago was paid in full.

i. A loan for $100,000 was made to one of Dristell’s suppliers. The supplier plans to repay Dristell this amount plus 10% interest within 18 months.


Required:

Calculate net cash flows from investing activities.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

Question Posted: