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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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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