1-A

On January 1, Year 1, Shelton Company had a balance of $325,000 in its Land account. During Year 1, Shelton sold land that had cost $106,500 for $132,000 cash. The balance in the Land account on December 31, Year 1, was $285,000.

Required

a. Determine the cash outflow for the purchase of land during Year 1.

b. Prepare the investing activities section of the Year 1 statement of cash flows

1-B

On January 1, Year 1, Hardy Company had a balance of $150,000 in its Common Stock account. During Year 1, Hardy paid $20,000 to purchase treasury stock. Treasury stock is accounted for using the cost method. The balance in the Common Stock account on December 31, Year 1, was $175,000. Assume that the common stock is no par stock. Required

a. Determine the net cash inflow from financing activities.

b. Prepare the financing activities section of the Year 1 statement of cash flows.