Analyze the information below:

From the Balance Sheet

20182019 Change

-

Machinery and Equipment41,250,00051,020,900 9,770,900

Accrued Depreciation(15,600,000)(19,875,000) (4,275,000)

Preferred Stock - 2,000,000 2,000,000

Common stock 100,000100,000-

APIC 9,850,000 9,850,000

Retained Earnings30,000,00041,452,000 11,452,000

Total Equity 39,950,000 53,42,000

From the Income Statement you know that:

Net income was$11,502,000

Depreciation was4,300,000

And from other notes you know that a truck, originally valued at 29,100 was sold for 1,000 cash

A) What was the effect of the truck sale on operating cash flow?

B) What was the effect of the truck sale on investing cash flow? (Show cash received and equipment purchases)

C) What was the effect of changes in the equity section of the balance sheet on the financing section of the cash flow?

For how to answer, see below.

Specify name: Example, Accounts receivable, loss on machinery, depreciation, etc.

Give amount of change using parenthesis for use of cash and positive number for source of cash

Example:(200,000) for use of cash; 200,000 for source of cash

Actually specify, use of cash or source of cach

Example of a properly done answer

Prepaid expenses ($200,000) use of cash

or

Prepaid expenses$200,000 source of cash.

(Showing work allows for partial credit)