Reference no: EM131800652

Assignment

Given only, the following information, answer the questions below. Increases and Decreases represent the change from prior year to current year. (Note to you are not told what the change in cash was for the year.)

Decrease in Accounts Receivable	32,000
Increase in Inventory	5,000
Increase in Property Plant and Equipment	10,000
Increase in Long -Term Investments	50,000
Increase in Long-Term Bonds Payable	120,000
Decrease in Accounts Payable	15,000
Increase in Retained Earnings	127,000
Increase in Common Stock	18,000
Increase in Salaries Payable	12,000
Decrease in Prepaid Expenses	7,000
Increase in Unearned Revenue	11,000
Increase in Accumulated Depreciation	15,000
Decrease in Dividends Payable	3,000

Other Info: Equipment was sold in the current year with original cost of $12,000 and a book value of $8,000 for cash proceeds of $6,000.Assume the increase in Long-Term Investments was the purchase of shares of another company. The company declared a $10,000 cash dividend during the year.

a) What amount would be included on the statement of cash flows under "Cash flows from Operating Activities"? USE THE INDIRECT METHOD TO SOLVE.

b) What amount would be included on the statement of cash flows under "Cash flows from Investing Activities"?

c) What amount would be included on the statement of cash flows under "Cash flows from Financing Activities"?