Question 2 The following information is necessary to answer questions 2, 3, and 4: Increase...
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Accounting
Question 2
The following information is necessary to answer questions 2, 3, and 4:
Increase in prepaid insurance 1000; Goodwill 2000; Equipment Depreciation expense 15000; Increase in accounts payable 3000; Net income 35000;Issuance of common stock 12000; Increase in inventory 5000; Payment of dividends 9000; Increase in bonds payable 7000;Decrease in accounts receivable 4000; increase in mortgage payable 26000;
Addditional information: Purchased equipment for $ 20,000, financing $ 10,000 on a note payable, and exchanging $ 5000 in common stock.
Sold equipment for $ 10,000 that cost $ 18,000 and had accumulated depreciation of $ 6,000.
Sold marketable securities for $ 15,000 that cost $ 13,500.
What is the net cash flow provided or used from operations?
a.
55,000
b.
53,500
c.
52,500
d.
51,500
10 points
Question 3
Using the information from question #2, what was the amount of cash used to purchase equipment?
a.
5,000
b.
20,000
c.
10,000
d.
15,000
10 points
Question 4
Using the information from question #2, what is the amount of cash flow provided or used from financing?
a.
36,000
b.
23,000
c.
24,000
d.
31,000
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