Denton Corp.s statement of financial position accounts as at 31 December 20X4 and 20X5 and information relating

Question:

Denton Corp.’s statement of financial position accounts as at 31 December 20X4 and 20X5 and information relating to 20X5 activities are presented below.

As at 31 December 20X5 20X4 Assets Cash $ 230,000 $ 100,000 Short-term investments 300,000 Accounts receivable 510,000 510,000 Inventory 680,000 600,000 Long-term investments 200,000 300,000 Plant assets 1,700,000 1,000,000 Accumulated depreciation (450,000) (450,000) Patent 90,000 100.000 Total assets $3.260,000 $2.160.000 Llablitles and Shareholders' Equity Accounts payable and accrued liabilities

Information relating to 20X5 activities:
• Net earnings for 20X5 were $690,000.
• Cash dividends were declared and paid in 20X5.
• Equipment costing $400,000 and having a net book value of $150,000 was sold for $150,000.
• A long-term investment was sold for $135,000. There were no other transactions affecting long-term investments in the year.
• Short-term investments consist of treasury bills with an original term of three months.


Required:

Determine the following amounts for Denton for the year 20X5:

1. Net cash from operating activities (indirect method)

2. Net cash from investing activities

3. Net cash from financing activities

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Intermediate Accounting Volume 1

ISBN: 9781260306743

7th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick

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