Classifying Cash Flows
The company provided the following information.
(a) Cash sales for the year were $50,000; sales onaccount totaled $60,000. (b) Cost of goods sold was $55,000.(c) All inventory is purchased on account. (d)Depreciation on building was $31,000 for the year.
(e) Depreciation on equipment was $2,000.
(f) Cash collections of accounts receivable were$38,000.
(g) Cash payments on accounts payable for inventory equaled$39,000.
(h) Rent expense paid in cash was $11,000.
(i) 20,000 shares of common stock were issued for$240,000 in cash.
(j) Land valued at $106,000 was acquired in exchangefor signing a mortgage note payable.
(k) Equipment was purchased for cash at a cost of$84,000.
(l) Dividends of $46,000 were declared but not yetpaid.
(m) $15,000 of dividends that had been declared the previous yearwere paid in cash.
(n) Interest totaling $16,000 was paid in cash duringthe year.
(o) A machine used on the assembly line was sold for$12,000 in cash. The machine had a book value of $7,000.
(p) On January 1, the company entered into an operating lease tosecure the use of a building having a cash price of $200,000. Thefirst lease payment of $19,000 in cash was made on January 1.
1. Compute cash from operating activities.2. Compute cash from investing activities.3. Compute cash from financing activities
