Compute the following cash flows for High Seas Nautical Company for the past year:
1. The beginning balance of Retained Earning was $ 139,000, while the end of the year balance of Retained Earnings was $ 178,000. Net income for the year was $ 61,000. No dividends payable were on the balance sheet. How much was paid in cash dividends during the year?
2. The beginning and ending balances of the Common Stock account were $ 212,000 and $ 271,000, respectively. Where would the increase in Common Stock appear on the statement of cash flows?
3. The beginning and ending balances of the Treasury Stock account were $ 51,000 and $ 75,000, respectively. Where would the increase in Treasury Stock appear on the statement of cash flows?
4. Property, Plant, and Equipment (net) increased by $ 14,000 during the year to have a balance of $ 159,000 at the end of the year. Depreciation for the year was $ 17,000. Acquisitions of new plant assets during the year totaled $ 39,000. Plant assets were sold at a loss of $ 2,000.
a. What were the cash proceeds from the sale of plant assets?
b. What amount would be reported on the investing section of the statement of cash flows? Would it be a source of cash or a use of cash?
c. What amount would be reported on the operating section of the statement of cash flows? How would it be presented?