The following balances were gathered from Brandon Company's general ledger.

June 30, 2014

June 30, 2015

Accounts receivable

$120,000

$132,000

Inventory

180,000

197,000

Accounts payable

43,000

54,000

Accrued liabilities

12,000

16,000

Income taxes payable

22,000

15,000

Sales

430,000

Cost of goods sold

270,000

Operating expenses (includes $15,000 depreciation)

112,000

Gain on sale of equipment

26,000

Income tax expense

17,000

Required: Using the indirect method, prepare the cash flows provided by operating activities section of Brandon's statement of cash flows.

Question 3:

Berry Corporation reported the following cash transactions for last year.

Issued common stock at $72 per share

$180,000

Paid dividends to stockholders at year end

60,000

Received dividends from investments in other companies

32,000

Purchased bonds issued by City of Metropolis

50,000

Borrowed money from City Bank

25,000

Made payment to City Bank on loan

4,000

Purchased office equipment

12,000

Received interest payment on City of Metropolis bonds

2,000

Required:

a.Prepare the investing section of Berry's statement of cash flows.

b.Prepare the financing section of Berry's statement of cash flows.