Calculate certain investing and financing information from financial statements (Learning Objective 3) 10–15 min.

Requirements Compute the following items for the statement of cash flows:

1. The beginning and ending Retained Earnings balances are $47,000 and $82,000, respectively. Net income for the period is $61,000. How much are cash dividends?

2. The beginning and ending net Fixed Assets balances are $106,000 and $114,000, respectively. Depreciation expense for the period is $17,000, and acquisitions of new fixed assets total $38,000. Fixed assets were sold at a $2,000 loss. What were the cash proceeds of the sale?

AppendixLO1