12b. The following information is related to Alpha Company\'s fiscal year 2017.
ID: 2331091 • Letter: 1
Question
12b.
The following information is related to Alpha Company's fiscal year 2017.
Income Statement:
Net Income $3,000,000
Depreciation Expense 500,000
Gain on Sale of Plant Assets 50,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payable ($40,000)
Plant Assets - Disposals 250,000
Plant Assets - Purchased (100,000)
Additional Information:
Common Stock exchanged for outstanding Long Term Notes Payable of $125,000
Dividends paid were $30,000
Use this information to determine Alpha Company's Net Cash Flows from Investing Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets ( ):
12c. The following information is related to Alpha Company's fiscal year 2017.
Income Statement:
Net Income $3,000,000
Depreciation Expense 500,000
Gain on Sale of Plant Assets 50,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payable ($40,000)
Plant Assets - Purchased 250,000
Plant Assets - Disposals (100,000)
Explanation / Answer
12b. Net Cash Flow from Investing Activities = Plant Assets Disposal + Gain on sale of asset - Plant assets purchased
Net Cash Flow from Investing Activities = $250000 + $50000 - $100000
Net Cash Flow from Investing Activities = $200000
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