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Masja [62]
4 years ago
15

In preparing Tywin Company's statement of cash flows for the most recent year, the following information is available: Purchase

of equipment $ 260,000 Proceeds from the sale of equipment 87,000 Purchase of land 91,000 Net cash flows from investing activities for the year were:
Business
1 answer:
soldier1979 [14.2K]4 years ago
3 0

Answer:

-$264,000

Explanation:

The net cash flows from investing activities for the year is presented below

Cash flow from investing activities

Purchase of equipment  -$260,000

Proceeds from the sale of equipment $87,000

Purchase of land -$91,000

Net cash flow used by investing activities  -$264,000

The purchase is a cash outflow so it would be shown in a minus sign whereas sales is a cash inflow so it would be added

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Answer:

Retained earning balance at the end would be = $205,000

Explanation:

Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid

The net income would increase the balance of the retained earnings hence it is added to it.

The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.

So applying this to the question, we have

Retained earning balance at the end would be:

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Retained earning balance at the end would be = $205,000

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