Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise): a. A building with a book value of $400,000 was sold for $500,000. b. Additional common stock was issued for $160,00o. c. Dristell purchased its own common stock as treasury stock at a cost of $75,000. d. Land was acquired by issuing a 6%, 10-year, $750,000 note payable to the seller. e. A dividend of $40,000 was paid to shareholders. f. An investment in Fleet Corp's common stock was made for $120,00o. g. New equipment was purchased for $65,000. h. A $90,000 note payable issued three years ago was paid in full. i. A loan for $100,000 was made to one of Dristell's suppliers. The supplier plans to repay Dristell this amount plus 10% interest within 18 months. Required: Calculate net cash flows from financing activities. (Cash outflows should be indicated with a minus sign.)
Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise): a. A building with a book value of $400,000 was sold for $500,000. b. Additional common stock was issued for $160,00o. c. Dristell purchased its own common stock as treasury stock at a cost of $75,000. d. Land was acquired by issuing a 6%, 10-year, $750,000 note payable to the seller. e. A dividend of $40,000 was paid to shareholders. f. An investment in Fleet Corp's common stock was made for $120,00o. g. New equipment was purchased for $65,000. h. A $90,000 note payable issued three years ago was paid in full. i. A loan for $100,000 was made to one of Dristell's suppliers. The supplier plans to repay Dristell this amount plus 10% interest within 18 months. Required: Calculate net cash flows from financing activities. (Cash outflows should be indicated with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Dristell Inc. Activities Overview**
Dristell Inc. conducted the following financial transactions during the year. All transactions involved cash unless specified otherwise:
1. **Sale of Building**: A building with a book value of $400,000 was sold for $500,000.
2. **Issuance of Common Stock**: Additional common stock was issued, generating $160,000.
3. **Treasury Stock Purchase**: Dristell repurchased its own common stock as treasury stock at a cost of $75,000.
4. **Land Acquisition**: Land was acquired by issuing a 6%, 10-year, $750,000 note payable to the seller, involving no immediate cash flow.
5. **Dividend Payment**: A dividend of $40,000 was distributed to shareholders.
6. **Stock Investment**: An investment in Fleet Corp.'s common stock was made, amounting to $120,000.
7. **Equipment Purchase**: New equipment was purchased for $65,000.
8. **Note Payable Repayment**: A $90,000 note payable, issued three years prior, was fully paid.
9. **Supplier Loan**: A loan of $100,000 was provided to one of Dristell’s suppliers. This amount will be repaid with an additional 10% interest within 18 months.
**Required Task:**
Calculate the net cash flows from financing activities. (Use a minus sign to denote cash outflows.)
**Note**: Ensure that all calculations accurately reflect the cash impacts of the financing transactions detailed above.
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