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PRACTICE EXERCISES Classifying Cash Flows The company provided the following information (a) Cash sales for the year were $50,000, sales on account tot 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 (0) Cash collections of accounts receivable were $38,000. (g) Cas (h) Rent expense paid in cash was 511,000 0 20,000 shares of common stock were issued for $240,000 in cash. 0 Land valued at $106,000 was acquired in exchange for signing a mortgage note payable. () Equipment was purchased for cash at a cost of $84,000 () Dividends of $46,000 were declared but not yet paid m) $15,000 of dividends that had been deciared the previous year were paid in cash. h payments on accounts payable for inventory equaled $39,000. (n) Interest totaling $16,000 was paid in cash during the year. (o) A machine used on the assembly line was sold for $12000 in cash. The machine had a book valu of $7,000 (p) On January 1, the company entered into an operating lease to secure the use of a building having a cash price of $200,000. The first lease payment of $19,000 in cash was made on January. 1. Compute cash from operating activities 2 Compute cash from investing activities. 3. Compute cash from financing activities

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