Reference no: EM132564070

Question - The 2015 accounting records of Outdoor Adventures Ltd reveal the following transactions and events.

All values are in S. (The company's financial year ends on 31 December each year).

Payment of interest 19,900

Cash sales 62,300

Retained earnings at the start of the year 574,000

Retained earnings at the end of the year 598,500

Receipt of dividend revenue 16,300

Payment of income tax 12,500

Profit 37,600

Payment of accounts payable for inventory 95,600

Payment for land 75,100

Collection of accounts receivable 195,300

Payment of salaries and wages 64,200

Depreciation expense 16,400

Proceeds from sale of aircraft 759,900

Purchase of equipment for cash 24,200

Loss on sale of aircraft 3,500

Payment of operating expenses 25,300

Required -

a) Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.

b) How much was the payment of dividends?

c) During the year equipment was sold and the company recorded a profit on sale of the equipment of $9,400.

This equipment cost $65,100 originally and had a carrying amount of $3,200 at the time of sale. What were the proceeds from the sale of this equipment?