Question
The following items are relevant to the preparation of a statement of cash flows for Cate Optical Inc. Comparative balance sheets show a decrease of
The following items are relevant to the preparation of a statement of cash flows for Cate Optical Inc. Comparative balance sheets show a decrease of $19,200 in accrued utilities payable for the current year. Nontrade short-term notes payable to banks increased $256,000 during the current year due to new borrowings. The following end-of-year adjusting entry was recorded. No other interest-related transactions or entries occurred during the year. Interest Expense 38,400 Premium on Bonds Payable 2,560 Interest Payable 40,960 $1,600 payment was made to reduce the principal balance of a nontrade loan from a bank. Gross equipment account increased $64,000 during the year, accumulated depreciation increased $25,600, and depreciation expense for the period is $32,000. One item of equipment (cost $32,000, accumulated depreciation $6,400) was sold during the year; a gain of $3,200 on the sale was recognized. Purchase of treasury stock, $96,000. Distribution of cash dividends, $16,000. Sale of available-for-sale debt securities for $51,200, at a loss of $9,600.
Required Determine the amount of net cash flows that would be reported in the Investing activities section of the statement of cash flows.
Determine the amount of net cash flows that would be reported in the Financing activities section of the statement of cash flows.
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