q 15

(Question 14 and 15 share info) Rolex Co. follows ASPE. Rolex Co's transactions for the year ended Dec 31, year 1 included the following: 1. Accounts payable increased by $100,000. 2. Sold long-term investments for $250,000. 3. Accounts receivable decreased by $50,000. 4. Purchased machinery and equipment for $62,500 cash. 5. Paid cash dividends of $300,000. 6. Purchased land for $375,000 cash. 7. Borrowed $275,000 from the bank on a long-term note. 8. Issued 1,000 common shares for $37,500. The cash used in financing activities for year 1 was: 0 $100,000 0 $(250,000) $12,500 O $(225,000)