Refer to the information in Exercise 12-3B. During the year, (Appendix Melville Company purchased plant assets for cash, sold investments for cash (the entire \(\$ 7,000\) gain 12A) developed during the year), and issued common stock for cash. The firm also declared and paid cash dividends. What items and amounts will appear in

(a) the cash flow from investing activities and

(b) the cash flow from financing activities sections of a statement of cash flows?

Exercise 12-3B

The following information was obtained from Melville Company's comparative balance sheets:

Assume that Melville Company's income statement showed depreciation expense of \(\$ 10,000\), a gain on sale of investments of \(\$ 7,000\), and a net income of \(\$ 60,000\).

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Cash..... Accounts receivable.. Inventory....... Prepaid rent... Long-term investments.. Plant assets. Accounts payable... Accumulated depreciation Income tax payable Common stock. Retained earnings Capital expenditures... End of Year $ 19,000 Beginning of Year $ 9,000 50,000 35,000 55,000 49,000 6.000 8,000 21,000 32,000 140,000 106,000 (42,000) (32,000) 24,000 22,000 4,000 6,000 127,000 92,000 106,000 91,000 15,200