Royal Rumble Inc. had the following transactions during 2018: 1. Issued $125,000

Question

Royal Rumble Inc. had the following transactions during 2018: 1. Issued $125,000 of par value common stock for cash. 2. Recorded and paid wages expense of $60,000 3. Acquired land by issuing common stock of par value $50,000. 4. Declared and paid a cash dividend of $10,000. 5. Sold a long-term investment (cost $3,000) for cash of S3,000. 6. Recorded cash sales of $400,000 7. Bought inventory for cash of $160,000. 8. Acquired an investment in Zynga stock for cash of $21,000. 9. Converted bonds payable to common stock in the amount of $500,000. 10. Repaid a 6 year note payable in the amount of $220,000. What was the net cash flows from investing activities? What was the nest cash flows from financing activities? Investing activities Financing activities

Explanation / Answer

Statement of Cash Flow Particulars Amount Total Amount Cash sales         400,000.00 wages expense         (60,000.00) Purchaseof inventory       (160,000.00) Cash flow from operating activities         180,000.00 Cash flow from Investing activities Sale of invt              3,000.00 Investment in Zynga Stock         (21,000.00) Cash flow from Investing activities         (18,000.00) Cash flow from Financing activities Issue of Stock         125,000.00 Repayment of note       (220,000.00) Dividends Paid         (10,000.00) Cash flow from Financing activities       (105,000.00) Investing activities         (18,000.00) Financing Activities       (105,000.00)

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