Problem $11-1.$

The Bee Company shows the following account amounts:

Problem $11-2.$

Required:

Determine how much cash was generated from sales during $2010.$

Explain what effect the following transactions would have on cash and how they would be shown in a cash flow statement. $($Create a Statement of Cash Flows using the following transactions$)$

A $$2,000,000$ piece of equipment is purchased with the proceeds of a new $12-$month note.

Mortgage bonds are retired with $$790,000$ cash and the proceeds of an issue of $150,000$

shares of common stock.

$$2,000,000$ of inventory is purchased on account.

A dividend of $$0\mathrm{.}25$ per share is declared on the $750,000$ outstanding shares.

A piece of machinery is sold for $$1,500,000$ cash. When originally purchased, it cost

Anwat $$5,000,000,$ and currently has $$2,500,000$ of accumulated depreciation.