Exercise - Cash Provided by Operating, Investing, and Financing Activities
The balance sheet data of Wyeth Company at the end of 2010 and 2009 follow.
|
2010
|
2009
|
|
Cash
|
$30,000
|
$35,000
|
|
Accounts receivable (net)
|
55,000
|
45,000
|
|
Merchandise inventory
|
65,000
|
45,000
|
|
Prepaid expenses
|
15,000
|
25,000
|
|
Equipment
|
90,000
|
75,000
|
|
Accumulated depreciation-equipment
|
(18,000)
|
(8,000)
|
|
Land
|
70,000
|
40,000
|
|
$307,000
|
$257,000
|
|
|
|
|
Accounts payable
|
$65,000
|
$52,000
|
|
Accrued expenses
|
15,000
|
18,000
|
|
Notes payable-bank, long term
|
-0-
|
23,000
|
|
Bonds payable
|
30,000
|
-0-
|
|
Common stock, $10 par
|
189,000
|
159,000
|
|
Retained Earnings
|
8,000
|
5,000
|
|
$307,000
|
$257,000
|
Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash. Equipment costing $13,000 was sold for $3,000; book value of the equipment was $6,000. Cash dividends of $9,000 were declared and paid during the year.
Instructions - Compute net cash provided or used by:
(a) operating activities
(b) investing activities
(c) financing activities