Cash Flows from Investing Activities

Sale of Plant Assets

Purchase of Imvestments

Purchase of Plant Assets

Net Cash Used by Imvesting Activities

Cash Flows from Financing Activities

Payment of Cash Dividends

Net Cash Used by Financing Activities

Net Increase in Cash

Cash at Beginning of Period Assets

Cash $ $258,560$ $ $154,880$

Accounts receivable $280,960121,600$

Inventory $360,000329,120$

Prepaid expenses $90,88083,200$

Long$-$term investments $441,600348,800$

Plant assets $912,000776,000$

Accumulated depreciation $(160,000)(166,400)$

Total $$2,184,000$ $$1,647,200$

Liabilities and Stockholders$$ Equity

Accounts payable $ $326,400$ $ $215,360$

Accrued expenses payable $52,80067,200$

Bonds payable $352,000467,200$ Sales revenue $$1,243,072$

Less:

Cost of goods sold $$433,472$

Operating expenses, excluding depreciation $39,712$

Depreciation expense $148,800$

Income tax expense $87,296$

Interest expense $15,136$

Loss on disposal of plant assets $24,000748,416$

Net income $ $494,656$

Additional information:

$1.$ New plant assets costing $$320,000$ were purchased for cash during the year.

$2.$ Old plant assets having an original cost of $$184,000$ and accumulated depreciation of $$155,200$

were sold for $$4,800$ cash.

$3.$ Bonds payable matured and were paid off at face value for cash.

$4.$ A cash dividend of $$83,296$ was declared and paid during the year.

$5.$ Common stock was issued at par for cash.

$6.$ There were no significant noncash transactions