Problem
Increase in prepaid insurance 1000; Goodwill 2000; Equipment Depreciation expense 15000; Increase in accounts payable 3000; Net income 35000;Issuance of common stock 12000; Increase in inventory 5000; Payment of dividends 9000; Increase in bonds payable 7000;Decrease in accounts receivable 4000; increase in mortgage payable 26000;
Addditional information: Purchased equipment for $ 20,000, financing $ 10,000 on a note payable, and exchanging $ 5000 in common stock.
Sold equipment for $ 10,000 that cost $ 18,000 and had accumulated depreciation of $ 6,000.
Sold marketable securities for $ 15,000 that cost $ 13,500.
a) What is the net cash flow provided or used from operations?
b) What was the amount of cash used to purchase equipment?
c) What is the amount of cash flow provided or used from financing?