Classifying Cash Flows

The company provided the following information.

(a)	Cash sales for the year were $50,000; sales on account totaled $60,000.
(b)	Cost of goods sold was $55,000.
(c)	All inventory is purchased on account.
(d)	Depreciation on building was $31,000 for the year.
(e)	Depreciation on equipment was $2,000.
(f)	Cash collections of accounts receivable were $38,000.
(g)	Cash payments on accounts payable for inventory equaled $39,000.
(h)	Rent expense paid in cash was $11,000.
(i)	20,000 shares of common stock were issued for $240,000 in cash.
(j)	Land valued at $106,000 was acquired in exchange for signing a mortgage note payable.
(k)	Equipment was purchased for cash at a cost of $84,000.
(l)	Dividends of $46,000 were declared but not yet paid.
(m)	$15,000 of dividends that had been declared the previous year were paid in cash.
(n)	Interest totaling $16,000 was paid in cash during the year.
(o)	A machine used on the assembly line was sold for $12,000 in cash. The machine had a book value of $7,000.
(p)	On January 1, the company entered into an operating lease to secure the use of a building having a cash price of $200,000. The first lease payment of $19,000 in cash was made on January 1.

Use the minus sign to indicate cash outflows.

1. Compute cash from operating activities.

$

2. Compute cash from investing activities.

$

3. Compute cash from financing activities.

$

Answer rating: 100% (QA)

Cash From Operating actitity Cash sale Cash collection on Account receivable Cash payment ... View the full answer