Determining Investing and Financing Activities

The following items are relevant to the preparation of a statement of cash flows for Pier Imports Inc.

1. Comparative balance sheets show a decrease of $9,600 in accrued utilities payable for the current year.

2. Nontrade short-term notes payable to banks increased $128,000 during the current year due to new borrowings.

3. The following end-of-year adjusting entry was recorded. No other interest-related transactions or entries occurred during the year.

interest expense	19,200
premium on bonds payable	1,280
interest payable		20,480

4. A $800 cash payment was made to reduce the principal balance of a nontrade loan from a bank.

5. Gross equipment account increased $32,000 during the year, accumulated depreciation increased $12,800, and depreciation expense for the period is $16,000. One item of equipment (cost $16,000, accumulated depreciation $3,200) was sold during the year; a gain of $1,600 on the sale was recognized.

6. Purchase of treasury stock, $48,000 cash.

7. Distribution of cash dividends, $8,000.

8. Sale of available-for-sale debt securities for $25,600, at a loss of $4,800.

Note: For the following questions, indicate a net cash outflow with a negative sign.

a. Determine the net cash flows that would be reported in the investing section of the statement of cash flows