How to get following answers right using equations and calculator (no excel) In

ID: 2766066 • Letter: H

Question

How to get following answers right using equations and calculator (no excel)

In its 2011 income statement, Thompson Inc. reported net income of $1, 220 and depreciation expense of $480. On its 2012 income statement, the company reported net income of $1,860 and depreciation expense of $720. Based on this information (and given the company's balance sheets for 2011 and 2012 in the chart above), compute Net Cash Flows from Financing Activities for Thompson in 2012. Record your answer as a dollar rounded (if necessary) to the nearest whole dollar, but do not include a dollar sign or any commas in your answer. Also, if your answer is a negative value, place a hyphen (i.e., -) before your answer with no space between the - and the number. For example, record -$23,426.9234 as -23427.

Explanation / Answer

Cash Flow from Financing Activities

Proceeds from Issue of Common Stock(Par Value)

$2000

Proceeds Issue of Common Stock(In excess of Par Value)

$5200

Repayment of Loan

-$700

Dividend Paid

-$1160

Net Cash Flow from Financing Activities

$5140

Beginning Balance Retained Earning = $10200

Add Current Year Net Income = $1860

Less Ending Balance of Retained Earnings = $10900

Dividends Paid During The Year = 1160