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: 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

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