The differences in Beal Inc.s balance sheet accounts at December 31, 2008 and 2007 are presented next:

The following information is related to 2008:
• Net income of \($790,000\).
• Declared cash dividends of \($500,000\).
• Sold a building costing \($600,000\) and having a carrying amount of \($350,000\) for \($350,000\).
• Acquired equipment costing \($110,000\) through the issuance of long-term debt.
• Sold a long-term investment for \($135,000\). There were no other transactions affecting long-term investments.
• Issued 10,000 shares of common stock for \($22\) a share.
Required:
In Beal’s 2008 statement of cash flows, determine:
1. Net cash provided by operating activities.
2. Net cash used in investing activities.
3. Net cash provided by financing activities.

Transcribed Image Text:

Assets Cash and cash equivalents Short-term investments Accounts receivable, net Inventory Long-term investments Plant assets Accumulated depreciation Liabilities and Stockholders' Equity Accounts payable and accrued liabilities Dividends payable Short-term bank debt Long-term debt Common stock, $10 par Additional paid-in capital Retained earnings Increase (Decrease) $ 120,000 300,000 -0- 80,000 (100,000) 700,000 $1,100,000 $ (5,000) 160,000 325,000 110,000 100,000 120,000 290,000 $1,100,000