Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

: Prepare the statement of cash flows from financing activities using the following company information: (10 points) 2020 2019 Cash 350,000 Accounts Receivable 85,000 100,000

: Prepare the statement of cash flows from financing activities using the following company information: (10 points)

2020

2019

Cash

350,000

Accounts Receivable

85,000

100,000

Prepaid Insurance

55,000

50,000

Prepaid Taxes

26,000

27,000

Equipment and Furniture

1,850,000

1,980,000

Accounts Payable

25,000

150,000

Salaries Payable

25,000

35,000

Mortgage Payable

7,250,000

7,500,000

Long-term Debt (other than mortgages)

$950,000

$0

Net Income

225,000

150,000

Depreciation Expense

415,000

450,000

Gain on sale of assets

75,000

125,000

Additional information:

  • The Company issued 10,550 shares of common stock (par value of $1) for $1,000,000.
  • The company sold equipment with cost of $130,000 and accumulated depreciation of $130,000 for $75,000.
  • The company received a $1,000,000 new loan, they received the money directly from lender. The company paid $50,000 on the principal of the new loan
  • The Company purchased 5,000 shares of its own stock for $500,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems A Practictioner Emphasis

Authors: Cynthia D. Heagy, Constance M. Lehmann

10th Edition

1891002821, 9781891002823

More Books

Students also viewed these Accounting questions