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Peter Corporation reported the following transactions for 2013: 1. Sold equipment for $7,000. The original cost was $15,000; the book value is $6,000 2. Issued
Peter Corporation reported the following transactions for 2013:
1. | Sold equipment for $7,000. The original cost was $15,000; the book value is $6,000 |
2. | Issued 2,000 shares of $5 par value common stock for $12 per share |
3. | Paid $3,000 for an Insurance policy which goes into effect in January 2014 |
4. | Recognized $2,000 in Interest expense on Dec 31, 2013 - to be paid on April 30, 2014 |
5. | Received $8,000 as collections from customers for 2012 sales, and $18,000 for 2013 sales |
6. | Reacquired 300 shares of its own common stock at $20 per share |
7. | Received $2,000 in dividends on stock held as available for sale |
8. | Recorded depreciation expense for $5,000 |
9. | Paid $1,000 of dividends to common stockholders |
10. | Purchased equipment costing $65,000, by making a cash down payment of $20,000 and signing a note for the remaining $45,000. |
11. | Acquired a building with a market value of $250,000 by issuing 20,000 shares of common stock. |
12. | Paid salaries of $18,000 |
13. | Cash received from sale of available for sale securities $6,000 |
14. | Repaid a loan, which included $5,000 of the principal and $1,000 in interest |
Peter Corporation uses the direct method for preparing the 2013 Statement of Cash Flows. The net cash flow from operating activities is:
Select one:
A. ($8,000)
B. $1,000
C. $4,000
D. $6,000
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