Chapter 14, Problem 6PS

Cash flow from investing activities excludes: $\left(\text{LO 14}-\text{1}\right)$
a. Cash paid for acquisitions.
b. Cash received from the sale of fixed assets.
c. Inventory increases due to a new (internally developed] product line.
d. All of the above.

$\text{TABLE 14}.\text{14}$ Heifer Sports Financial statements
Income statement	$\text{2}0\text{18}$
Sales	$\$\text{5},\text{5}00,000$
Cost of goods sold	$\text{2,850,000}$
Depreciation	$\text{280,000}$
Selling 8a administrative expenses	$\text{1,500,000}$
EBIT	$\text{\$870,000}$
Interest expense	$\text{130,000}$
Taxable income	$\text{\$740,000}$
Taxes	$\text{330,000}$
Net income	$\text{\$410,000}$
Balance sheet. year-end	$\text{2018}$	$\text{2017}$
Assets
Cash	$\text{\$50,000}$	$\text{\$40}\text{.000}$
Accounts receivable	$\text{660,000}$	$\text{690,000}$
Inventory	$\text{490,000}$	$\text{480,000}$
Total current assets	$\text{\$1,200,000}$	$\text{\$1,210,000}$
Fixed assets	$\text{3,100,000}$	$\text{2,800,000}$
Total assets	$\text{\$4,300,000}$	$\text{\$4,010,000}$

Liabilities and shareholders' equity
Accounts payable	$\text{\$340,000}$	$\text{\$450,000}$
Short-term debt	$\text{480,000}$	$\text{550,000}$
Total current liabilities	$\text{\$820,000}$	$\text{\$1,000,000}$
Long-term bonds	$\text{2,520}\text{.000}$	$\text{2,200,000}$
Total liabilities	$\text{\$3,340,000}$	$\text{\$3,200,000}$
Common stock	$\text{\$310,000}$	$\text{\$310,000}$
Retained earnings	$\text{650,000}$	$\text{500,000}$
Total shareholders’ equity	$\text{\$960,000}$	$\text{810,000}$
Total liabilities and shareholders' equity	$\text{\$4,300,000}$	$\text{\$4,010,000}$