Q6: The balance sheet data of Wheels n Tires, Inc. at the end of 2012 and 2011 follow.

2012 2011

Cash $ 7,500 $ 10,000

Accounts receivable (net) 82,000 87,500

Merchandise inventory 86,000 81,000

Prepaid expenses 9,000 12,000

Equipment 170,000 145,000

Accumulated depreciationequipment (45,000) (36,000)

Land 30,000 50,000

Total assets $339,500 $349,500

Accounts payable $ 44,500 $ 58,000

Accrued expenses 11,000 9,000

Notes payablebank, short-term 0 50,000

Bonds payable 20,000 0

Common stock, $1 par 181,000 160,000

Retained earnings 83,000 72,500

Total liabilities and shareholders equity $339,500 $349,500

Equipment was purchased for $21,000 in exchange for common stock, par $21,000, during the year; all other equipment purchased was for cash. Land was sold for $31,500. Cash dividends of $7,000 were declared and paid during the year.

Instructions

Compute net cash provided (used) by:

(a) operating activities.

(b) investing activities.

(c) financing activities.