Question - For the most recent accounting year, a company reported the following operating and cash activities:
|
Investments in other companies
|
(8,628)
|
|
Increase in inventories
|
(2,685)
|
|
Depreciation and amortization
|
35,254
|
|
Long-term debt repayment
|
(165,243)
|
|
Net income
|
28,961
|
|
Proceeds from issuance of common stock
|
13,485
|
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Proceeds from sale of property and equipment
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3,590
|
|
Payment of dividends
|
(6,255)
|
|
Proceeds from long-term debt issuance
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61,785
|
|
Purchases of property and equipment
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(25,400)
|
|
Decrease in accounts receivable
|
5,291
|
|
Decrease in accounts payable
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(8,466)
|
Requirements:
1. Prepare the operating, investing and financing sections of the cash flow statement.
2. Explain the major sources and uses of cash for the year.