(Cash Provided by Operating, Investing, and Financing Activities) The balance sh
ID: 2455137 • Letter: #
Question
(Cash Provided by Operating, Investing, and Financing Activities)
The balance sheet data of Wyeth Company at the end of 2012 and 2011 follow.
2012
2011
70,000
40,000
$307,000
$257,000
8,000
5,000
$307,000
$257,000
Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash. Equipment costing $13,000 was sold for $3,000; book value of the equipment was $6,000. Cash dividends of $9,000 were declared and paid during the year.
Instructions
Compute net cash provided or used by: (Enter all amounts as positive numbers.)
Explanation / Answer
Solution:
Cash Flow from Operating Activities Net income of the Year 12,000 Add: Depreciation 10,000 Add: Loss on Sale 3,000 Increase in Accounts Receivables -10,000 Increase in merchandise -20,000 Decrease in Prepaid Expense 10,000 Increase in Accounts Payable 13,000 Decrease in Accured expenses -3,000 Cash Flow from Operating Activities 15000 Cash flow from Investing Activities Sale of Equipment 3,000 Purchase of Equipment -21000 Cash flow from Investing Activities -18,000 Cashflow from financing Activities Dividends Paid -9000 Payment of Notes payable -23000 Issue of Bonds Payable 30,000 Cash flow from Investing Activities -2,000Related Questions
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