Indirect: Cash flows from operating activities
1. "Fitzpatrick Company's calendar-year 2013 income statement shows the following: Net Income, $374,000; Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant Assets, $6,000. An examination of the company's current assets and current liabilities reveals the following changes (all from operating activities): Accounts Receivable decrease, $17,100; Merchandise Inventory decrease, $42,000; Prepaid Expenses increase, $4,700; Accounts Payable decrease, $8,200; Other Payables increase, $1,200. Use the indirect method to compute cash flow from operating activities.
Cash flows from investing activities
2. Use the following information to determine this company's cash flows from investing activities. a. Equipment with a book value of $84,000 and an original cost of $161,000 was sold at a loss of $32,000. b. Paid $106,000 cash for a new truck. c. Sold land costing $320,000 for $405,000 cash, yielding a gain of $85,000. d. Long-term investments in stock were sold for $92,100 cash, yielding a gain of $14,00.
Cash flows from financing actives
3. Use the following information to determine this company's cash flows from financing activities.
a. Net income was $35,000.
b. Issued common stock for $64,000 cash. c. Paid cash dividend of $14,600.
c. Paid cash dividend of $14,600.
d. Paid $50,000 cash to settle a note payable at its $50,000 maturity value.
e. Paid $12,000 cash to acquire its treasury stock.
f. Purchased equipment for $39,000 cash.