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A restaurant purchased new kitchen equipment for $35,000. Old kitchen equipment was sold for $800. A long- term investment was sold for $50,000. Equity stock was bought back (repurchased) for $12,000, and a cash dividend was paid in the amount of $40,000. The company increased its long-term debt by $70,000. a. Determine the net cash flow from investing activities. b. Determine the net cash flow from financing activities.

A restaurant purchased new kitchen equipment for $35,000. Old kitchen equipment was sold for $800. A long- term investment was sold for $50,000. Equity stock was bought back (repurchased) for $12,000, and a cash dividend was paid in the amount of $40,000. The company increased its long-term debt by $70,000. a. Determine the net cash flow from investing activities. b. Determine the net cash flow from financing activities.

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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A restaurant purchased new kitchen equipment for $35,000. Old kitchen equipment was sold for $800. A long- term investment was sold for $50,000. Equity stock was bought back (repurchased) for $12,000, and a cash dividend was paid in the amount of $40,000. The company increased its long-term debt by $70,000. a. Determine the net cash flow from investing activities. b. Determine the net cash flow from financing activities.
Transcribed Image Text:A restaurant purchased new kitchen equipment for $35,000. Old kitchen equipment was sold for $800. A long- term investment was sold for $50,000. Equity stock was bought back (repurchased) for $12,000, and a cash dividend was paid in the amount of $40,000. The company increased its long-term debt by $70,000. a. Determine the net cash flow from investing activities. b. Determine the net cash flow from financing activities.
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