Question

Rowe Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it reported the following activities:
Net income $ 4,135
Purchase of property, plant, and equipment 871
Borrowings under line of credit (bank) 1,417
Proceeds from issuance of stock 11
Cash received from customers 29,164
Payments to reduce long-term debt 46
Sale of investments 134
Proceeds from sale of property and equipment 6,594
Dividends paid 277
Interest paid 90

Required:
Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (Amounts to be deducted and negative net cash amount should be indicated with minus sign. Omit the "$" sign in your response.)

Answer 1

Answer:

$5,857; $1,105

Explanation:

Cash flows from investing activities:

= Proceeds from sale of property and equipment + Sale of investments - Purchase of property, plant, and equipment

= $6,594 + $134 - $871

= $5,857

Therefore, the net cash provided by the investing activities is $5,857.

Cash flows from Financing activities:

= Borrowings under line of credit (bank) + Proceeds from issuance of stock - Payments to reduce long-term debt - Dividends paid

= $1,417 + $11 - $46 - $277

= $1,105

Therefore, the net cash provided by the investing activities is $1,105.