1. Calculate the net amount of cash provided by or used for financing activities for the year. o. Briefly justify why you excluded any of these items in your calculation in part a. . Briefly explain your treatment of interest expense in your calculation in part a.
1. Calculate the net amount of cash provided by or used for financing activities for the year. o. Briefly justify why you excluded any of these items in your calculation in part a. . Briefly explain your treatment of interest expense in your calculation in part a.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.2E
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Please complete part a, b and c if possible.
![Shepherd Industries had the following cash flows by major categories during the current year.
Cash provided by:
Receipts from customers
$560,000
Sale of bonds
420,000
Sale of treasury stock
52,000
Interest and dividends received
56,000
Sale of equipment (at a $56,000 loss)
236,000
Cash used for:
Payments to employees
$145,000
Payments to purchase inventory
190,000
Dividends on common stock
60,000
Purchase of treasury stock
20,000
Interest expense
82,000
a. Calculate the net amount of cash provided by or used for financing activities for the year.
b. Briefly justify why you excluded any of these items in your calculation in part a.
c. Briefly explain your treatment of interest expense in your calculation in part a.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3679eb6-785f-4d01-acab-97d1b45fc4bd%2F4f732766-3866-465c-9caf-b0fec34e29c9%2F2rv4ltr_processed.png&w=3840&q=75)
Transcribed Image Text:Shepherd Industries had the following cash flows by major categories during the current year.
Cash provided by:
Receipts from customers
$560,000
Sale of bonds
420,000
Sale of treasury stock
52,000
Interest and dividends received
56,000
Sale of equipment (at a $56,000 loss)
236,000
Cash used for:
Payments to employees
$145,000
Payments to purchase inventory
190,000
Dividends on common stock
60,000
Purchase of treasury stock
20,000
Interest expense
82,000
a. Calculate the net amount of cash provided by or used for financing activities for the year.
b. Briefly justify why you excluded any of these items in your calculation in part a.
c. Briefly explain your treatment of interest expense in your calculation in part a.
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