Following transactions occurred during 2005:
1) Acquired machine with cost of $225,000 by issuing shares of common stock
2) Bonds, with $500,000 of face value and 10 years till maturity, were issued at a $35,000 premium
3) Collected $175,000 on acct
4) Declared $65,000 of dividends. Pd $50,000 declared in 2005 plus another $25,000 that was declared in 2004
5) Equipment was purchased for $250,000 by issuing a 5-year note for $200,000 and paying the balance in cash
6) Investments classified as Avail-For-Sale, with carrying value of $65,000 were sold at a $10,000 loss
7) Issued 10,000 shares of $20 par preferred stock at $35 per share
8) Machines having a book value of $125,000 were sold at a $15,000 gain
9) Purchased $315,000 of inventory on account
10) Reacquired previously issued common stock for $85,000
11)Received $225,000 for a note that matured, including $40,000 of interest
12) Trading Investments were purchased for $35,000 cash
Compute amt of Net Cash Flow FYE 12/31/05 from 1) Investing Activities 2) Financing Activities
CLUE: Net Cash flow from financing activities exceeds net cash flow from investing activities by $395,000