Consider three independent cases for the cash-flow data of Prime Motor Company:

For each case, identify from the cash-flow statement how Prime generated the cash to acquire new plant assets.
\section*{CHALLENGE EXERCISE}

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Cash flows from operating activities: Net income... Depreciation and amortization. Increase in current assets. Decrease in current liabilities. Cash flows from investing activities: Acquisition of plant assets..... Sales of plant assets.. Cash flows from financing activities: New borrowing. Payment of debt. Net increase (decrease in cash)....... Case A Case B Case C $ 30,000 $ 30,000 $ 30,000 11,000 11,000 (19,000) (7,000) (6,000) $ 16,000 (8,000) $ 26,000 11,000 (1,000) -0- $ 40,000 $(91,000) 97,000 $ (91,000) 4,000 $ 6,000 $ (87,000) $ 16,000 (21,000) $104,000 (29,000) S(91,000) 8,000 $(83,000) $ 50,000 (9,000) $ (5,000) $ 75,000 $ 41,000 $ 17,000 $ 14,000 $ (2,000)