Question

Below is activity for A Company during the year. Sold Equipment for $65,000. Purchased new Equipment for $140,000 Issued bonds for $100,000. Paid $20,000 in dividends to common stockholders. Received $200,000 when the company had a seasoned equity offering (sold common stock). Paid back a $300,000 Note Payable. Fill out the Investing and Financing Section of A Company's cash flow statement. A Company Cash Flow Statement Cash Flow from Investing Activities Net Cash inflow(outflow) from Investing Activities Cash Flow from Financing Activities Net Cash inflow/(outflow) from Financing Activities

Answer 1

Answer:

Net Cash inflow (outflow) from Investing activities ($75,000)

Net Cash inflow (outflow) from Financing activities ($20,000)

Explanation:

The computation of the Investing and Financing is shown below:-

                                      A Company

                               Cash Flow Statement

Cash Flow from Investing Activities  

Sale of Equipment                                                            $65,000

Purchase of new equipment                                            ($140,000)

Net Cash inflow (outflow) from Investing activities     ($75,000)

Cash Flow from Financing Activities

New Bond issuance                                                      $100,000

Paid dividends                                                                    ($20,000)

Sale of Common Stock                                                      $200,000

Paid Notes Payable                                                           ($300,000)

Net Cash inflow (outflow) from Financing activities     ($20,000)