Berry Corporation reported the following cash transactions for last year. Issued

Question

Berry Corporation reported the following cash transactions for last year.

Issued common stock at $72 per share $180,000

Paid dividends to stockholders at year end 60,000

Received dividends from investments in other companies 32,000

Purchased bonds issued by City of Metropolis 50,000

Borrowed money from City Bank 25,000

Made payment to City Bank on loan 4,000

Purchased office equipment 12,000

Received interest payment on City of Metropolis bonds 2,000

Required:

a. Prepare the investing section of Berry’s statement of cash flows.

b. Prepare the financing section of Berry’s statement of cash flows.

Explanation / Answer

a)

2.

Cash flows from investing activities Dividend received from investments   $   32,000 Cash paid for purchase of bonds $ (50,000) Cash paid for purchase of office equipment $ (12,000) Interest received on bonds $      2,000 Net cash used for investing activities $ (28,000)

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