Question
Angels Awesome Stuff, Inc. (AAS) had net income of $1 million in the fourth quarter of 2018. They purchased $5.0 million in new manufacturing equipment
Angels Awesome Stuff, Inc. (AAS) had net income of $1 million in the fourth quarter of 2018. They purchased $5.0 million in new manufacturing equipment and sold some old equipment for $195,000. Their inventories fell by $75,000, their interest payments increased from $40,000 in the previous quarter to $45,000 this quarter, their accounts receivable rose by $155,000, A/P rose by $85,000, and they had D&A of $200,000. They also sold $500,000 worth of (their own) common stock. AAS borrowed an additional $1,000,000 but paid down existing loans by $500,000. They added $1 million to retained earnings and paid out dividends of $100,000. AAS started the period with $800,000 in cash.
a. Given this information, what would their net cash flows from operating activities be?
b. Given this information, what would their net cash flows from investing activities be?
c. Given this information, what would their net cash flows from financing activities be?
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