6. Use the following information to determine this companys cash flows from financing activities:

i. Issued common stock for $40,000 cash

ii. Paid $70,000 cash to retire a note payable at its $70,000 maturity value

iii. Paid cash dividend of $15,000

7. Use the following information to determine this companys cash flows from investing activities:

i.Sold a factory with a book value of $9,000 and an original cost of $8,000 at a loss of $1,000

ii.Paid $7,000 cash for new equipment

iii.Sold long-term stock investments for $2,000 cash, yielding a loss of $4,000

iv.Sold land costing $17,500 for $16,000 cash, yielding a loss of $1500

iv. Paid $5,000 cash to acquire its treasury stock

1.A machine with a cost of $175,000 and accumulated depreciation of $94,000 is sold for $87,000 cash. The amount reported as a source of cash under cash flows from investing activities. Determine the type of this activity.

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2.Explain what the cash coverage of growth ratio implies to financial analysts.

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3.Explain the purpose of the statement of cash flows.

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