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LMN Inc presents the following for the year ended December 31, 2036: Description Amount ($) Sales 20,400,000 Cost of goods sold 12,240,000 Selling expenses 2,040,000

LMN Inc presents the following for the year ended December 31, 2036:

Description

Amount ($)

Sales

20,400,000

Cost of goods sold

12,240,000

Selling expenses

2,040,000

Administrative expenses

510,000

Interest expense

280,000

Gain on sale of vehicle

150,000

Income tax expense

380,000

Additional information:

  1. Depreciation of $570,000 is included in selling expenses and $190,000 in administrative expenses.
  2. A vehicle was sold for $2,400,000 cash. This vehicle cost $2,600,000 and had a carrying value of $2,120,000.
  3. New vehicle was purchased for $1,300,000 cash.
  4. Dividends of $760,000 were declared and paid.
  5. Purchased 3,000 treasury shares for $300,000.

Requirements:

  1. Calculate the cash flows from operating activities.
  2. Determine the cash flows from investing activities.
  3. Compute the cash flows from financing activities.
  4. Identify the ending cash balance.
  5. Reconcile net income to net cash provided by operating activities.

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