Question
A company's statement of cash flows includes the following cash transactions: Collections from customers $1,250,000 Inventory purchase$750,000 Property and equipment purchase$270,000 Receipt of cash dividends
A company's statement of cash flows includes the following cash transactions:
Collections from customers $1,250,000
Inventory purchase$750,000
Property and equipment purchase$270,000
Receipt of cash dividends from investments$5,000
Interest payment on long-term debt$25,000
Payment of wages$315,000
Payment of rent on office building$40,000
Borrowing long-term debt$200,000
Payment of cash dividends$15,000
Sale of long-term investments$100,000
Issuance of stock$200,000
Assuming the company uses U.S. GAAP standards, what is the net cash flow from
a)Operating activities (along with the amount, please indicate whether it is a net cash inflow or net cash outflow).
b)Investing activities (along with the amount, please indicate whether it is a net cash inflow or net cash outflow).
c)Financing activities (along with the amount, please indicate whether it is a net cash inflow or net cash outflow).
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