Task: (Cash Provided by Operating, Investing, and Financing Activities)
The balance sheet data of Brown Company at the end of 2007 and 2006 follow.
2007 2006
Cash $30,000 $35,000
Accounts receivable (net) 55,000 45,000
Merchandise inventory 65,000 45,000
Prepaid expenses 15,000 25,000
Equipment 90,000 75,000
Accumulated depreciation-equipment (18,000) (8,000)
Land 70,000 40,000
$307,000 $257,000
Accounts payable $65,000 $52,000
Accrued expenses 15,000 18,000
Notes payable-bank, long term -0- 23,000
Bonds payable 30,000 -0-
Common stock, $10 par 189,000 159,000
Retained Earnings 8,000 5,000
$307,000 $257,000
Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash. Equipment costing $10,000 was sold for $3,000; book value of the equipment was $6,000. Cash dividends of $10,000 were declared and paid during the year.
Instructions
Compute net cash provided or used (Enter negative number in parenthesis for cash used, for example (20,000).) by:
(a) operating activities. $
(b) investing activities. $
(c) financing activities. $