Measuring Cash Flows. These financial statements are from Abramson Stores.

In addition, Abramson sold fixed assets originally costing \(\$ 50,000\) and having a book value of \(\$ 15,000\).
\section*{Required:}
1. As defined in the chapter, what is the "answer" to the cash-flow statement?
2. Based on the preceding data, what was the cash flow from fina 1cing activities?
3. How much cash was paid for purchases of fixed assets?

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12/31/1999 12/31/1998 Increase (Decrease) Cash.... $ 12,000 $ 12,000 $ 0 Accounts receivable (net) 40,000 45,000 (5,000) Inventories 65,000 45,000 20,000 Fixed assets 180,000 160,000 20,000 Less accumulated depreciation. (45,000) (50,000) 5,000 Total assets. $252,000 $212,000 $40,000 Accounts payable $ 15,000 $ 20,000 $ (5,000) Bonds payable 80,000 Common stock. 120,000 60,000 100,000 20,000 20,000 Retained earnings. 37,000 32,000 5,000 Total liabilities and equity. $252,000 $212,000 $40,000