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Data shown below related to the statement of cash flows for Putnam, Inc.: Putnam, Inc. Comparative Balance Sheets Assets: December 31, 2015 2014 Current Assets:
Data shown below related to the statement of cash flows for Putnam, Inc.: Putnam, Inc. Comparative Balance Sheets Assets: December 31, 2015 2014 Current Assets: Cash $ 1,380,000 Accounts Receivable (net) Inventory Prepaid Expenses Total Current Assets 3,120,000 $1,080,000 2,160,000 3,900,000 2,520,000 702,000 630,000 9,102,000 6,390,000 Long-Term Investments 450,000 Plant Assets: Property, Plant & Equipment 4,380,000 2,880,000 Accumulated Depreciation (900,000) (540,000) 3,480,000 2,340,000 $13,032,000 $8,730,000 Total Plant Assets Total Assets Equities: Current Liabilities: Accounts Payable Accrued Expenses Dividends Payable Total Current Liabilities Long-Term Notes Payable Stockholders' Equity: Common Stock Retained Earnings Total Equities Net Credit Sales Putnam, Inc. Comparative Income Statements Cost of Goods Sold Gross Profit 6,210,000 Operating Expenses (including Income Tax) Net Income $ 2,550,000 $2,190,000 618,000 402,000 564,000 3,570,000 2,754,000 1,650,000 6,000,000 4,800,000 1,812,000 1,176,000 $13,032,000 $8,730,000 December 31, 2015 $14,040,000 2014 $7,506,000 7,830,000 3,762,000 3,744,000 5,172,000 2,748,000 $1,038,000 $ 996,000 Additional Information: a. Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2015 and 2014, and no receivables were charged against the allowance. Accounts payable are recorded net of any discount and are always paid within the discount period. b. The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital. The amount to be shown on the cash flow statement as net cash provided by investing activities would total what amount? O a. $450,000. b. $1,500,000. O c. $1,590,000. d. $1,950,000
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