Utah Corp.
Use the following selected data and additional information from the records of Utah Corp. to answer the questions that follow.
|
Balance Sheet Data
|
2016
|
2015
|
|
Accounts receivable
|
$ 36,000
|
$ 42,000
|
|
Inventories
|
28,000
|
25,000
|
|
Accounts payable
|
31,000
|
35,000
|
|
Salaries payable
|
2,000
|
1,000
|
|
Equipment
|
60,000
|
40,000
|
|
Accumulated depreciation
|
12,000
|
16,000
|
|
Bonds payable
|
50,000
|
100,000
|
|
Common stock
|
150,000
|
I OO,OOO
|
|
Retained earnings
|
38,000
|
20,000
|
|
Income Statement Data
|
|
2016
|
|
Net sales
|
|
$420,000
|
|
Cost of goods sold
|
|
300,000
|
|
Operating expenses (excluding depreciation expense)
|
84,000
|
|
Net income
|
30,000
|
|
Gain on sale of equipment (included in net income above)
|
2,000
|
Additional infomation:
(l) Equipment with a cost of $15,000 and a book value of $3,000 was sold for $5,000 during 2016.
Common stock was issued to retire bonds payable during 2016.
The only items affecting retained earnings in 2016 were net income and dividends declared and paid.
Review the data for Utah Corp.
REQUIRED:
Prepare the investing activities section of a statement of cash flows for 2016 for Utah Corp.