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During a recent year, the Corp. reported net income of $25,000. The company also reported the following activities: a. Purchased equipment for $6,000 in cash.
During a recent year, the Corp. reported net income of $25,000. The company also reported the following activities: a. Purchased equipment for $6,000 in cash. b. Issued common stock for $1,000 in cash c. Depreciation of equipment was $9,000 for the year More information is presented below. Current year | Assets Prior year Prior year More information is presented below. Current year Assets Cash and cash equivalents $84,000 Accounts receivable 53,600 Inventory 39,600 Prepaid expenses 5,500 Equipment 206,000 Accumulated depreciation (126,700) Liabilities Current liabilities Accounts payable $48,000 Accrued liabilities 44,000 | Stockholders' equity Common stock 10,000 Retained earnings 160,000 $48,700 50,000 | 39,000 15,000 200,000 (117,700) $49,000 42,000 9,000 135,000 Q: Compute cash flows from financing activities? OA. -$1,000 OB. $5,000 c. $1,000 OD. -$5,000
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