A company had the following cash flow activities during the year: Cash Inflows Cash OutflowsIssue common stock $75,000 Purchase equipment $180,000Sell inventory to customers 86,000 Purchase inventory 38,000Issue notes payable 53,000 Purchase treasury stock 40,000Sell land 98,000 Repay notes payable 30,000Earn interest on investments 2,000 Pay salaries 39,000Sell patent 61,000 Pay dividends 15,000Required:Calculate net cash flows from (a) operating activities, (b) investing activities, and (c) financing activities. (d) Assuming the balance of cash at the beginning of the year is $53,000, calculate the ending balance of cash. How would your answers change if the common stock was issued for $80,000 and the equipment was purchased for $170,000?
A company had the following cash flow activities during the year:
Issue common stock $75,000 Purchase equipment $180,000
Sell inventory to customers 86,000 Purchase inventory 38,000
Issue notes payable 53,000 Purchase
Sell land 98,000 Repay notes payable 30,000
Earn interest on investments 2,000 Pay salaries 39,000
Sell patent 61,000 Pay dividends 15,000
Required:
Calculate net cash flows from (a) operating activities, (b) investing activities, and (c) financing activities. (d) Assuming the balance of cash at the beginning of the year is $53,000, calculate the ending balance of cash. How would your answers change if the common stock was issued for $80,000 and the equipment was purchased for $170,000?
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