Reference no: EM13513706

Newport Steam Corporation's balance sheet accounts as of December 31,19X8, and December 31, 19x9, and the information relating to the 19x9 activities, are presented below.

		December 31
	19x9	19x8
ASSETS
Cash	$ 230,000	$ 100,000
Short-Term Investments	300,000	0
Accounts Receivable (net)	550,000	550,000
Inventory	680,000	600,000
Long-Term Investments	200,000	300,000
Plant Assets	1,700,000	1,000,000
Accumulated Depreciation	(450,000)	(450,000)
Goodwill	90,000	100,000
Total Assets	$3,300,000	$2,200,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable	$ 825,000	$ 720,000
Long-Term Debt	325,000	0
Common Stock, $1 Par	800,000	700,000
Additional Paid-in Capital	370,000	250,000
Retained Earnings	980.000	530,000
Total Liabilities and Stockholders' Equity	$3,300,000	$2,200,000

Information relating to 19x9 activities is as follows:

(1) Net income for 19x9 was $700,000.

(2) Purchase of short-term investments for $300,000, which will mature on 30, 20 0.

(3) Cash dividends declared and paid in 19x9 worth $250,000.

(4) Equipment costing $400,000, having accumulated depreciation of $250,000, was sold in 19x9 for $150,000.

(5) Plant assets worth $1,100,000 were purchased for cash.

(6) A long-term investment costing $100,000 was sold for $135,000.

(7) 100,000 shares of $1-par-value common stock were sold for $2.20 a share.

(8) Amortization of goodwill for 19x9 was $10,000.

Calculate Newport's net cash inflows or outflows for (a) operating, (b)investing, and (c) financing activities. Discuss whether or not the short-term investments are cash equivalents.