Compute the following cash flows for Moulton Flooring Company for the past year:
1. The beginning balance of Retained Earning was $135,000, while the end of the year balance of Retained Earnings was $180,000. Net income for the year was $63,000. 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 $214,000 and $275,000, 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 $55,000 and $79,000, respectively. Where would the increase in Treasury Stock appear on the statement of cash flows?
4. The Property, Plant, & Equipment (net) increased by $8,000 during the year to have a balance of $147,000 at the end of the year. Depreciation for the year was $16,000. Acquisitions of new plant assets during the year totaled $37,000. Plant assets were sold at a loss of $3,000.
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?