Classifying Cash Flows
The company provided the following information:
a. Cash sales for the year were $50,000; sales on account totalled $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 exchange for 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 yet paid
m. $15,000 of dividends that had been declared the previous year were paid in cash
n. Interest totalling $16,000 was paid in cash during the 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 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.
1. Compute cash from operating activities.
2. Compute cash from investing activities.
3. Compute cash from financing activities.