Assignment
Given only, the following information, answer the questions below. Increases and Decreases represent the change from prior year to current year. (Note to you are not told what the change in cash was for the year.)
|
Decrease in Accounts Receivable
|
32,000
|
|
Increase in Inventory
|
5,000
|
|
Increase in Property Plant and Equipment
|
10,000
|
|
Increase in Long -Term Investments
|
50,000
|
|
Increase in Long-Term Bonds Payable
|
120,000
|
|
Decrease in Accounts Payable
|
15,000
|
|
Increase in Retained Earnings
|
127,000
|
|
Increase in Common Stock
|
18,000
|
|
Increase in Salaries Payable
|
12,000
|
|
Decrease in Prepaid Expenses
|
7,000
|
|
Increase in Unearned Revenue
|
11,000
|
|
Increase in Accumulated Depreciation
|
15,000
|
|
Decrease in Dividends Payable
|
3,000
|
Other Info: Equipment was sold in the current year with original cost of $12,000 and a book value of $8,000 for cash proceeds of $6,000.Assume the increase in Long-Term Investments was the purchase of shares of another company. The company declared a $10,000 cash dividend during the year.
a) What amount would be included on the statement of cash flows under "Cash flows from Operating Activities"? USE THE INDIRECT METHOD TO SOLVE.
b) What amount would be included on the statement of cash flows under "Cash flows from Investing Activities"?
c) What amount would be included on the statement of cash flows under "Cash flows from Financing Activities"?