Information for Frobisher Inc Was as Follows

question 51

Essay

Information for Frobisher Inc was as follows:
a) On December 31, 2013, sold an operational asset with a carrying value of $8,000 for $5,000 cash, resulting in a $3,000 loss.
b) Amortization expense for the year was $4,000.c) Sold 200 common shares at $10 per share.
d) Paid $10,000 on a long-term note payable.
e) Sold a long-term investment that had cost $400 for $500.f) Inventory increased $2,500 over the year.
g) Net income for the year was $125,000.
h) The company paid dividends of $24,000 during the year and incurred $3,500 in interest expense.
Required:
A) What was the cash flow from investing activities for Frobisher for 2013? Show calculations.
B) What was the cash flow from financing activities for Frobisher for 2013? Show calculations.

• A) What was the cash flow from investing activities for Frobisher for 2013? Show calculations.
• B) What was the cash flow from financing activities for Frobisher for 2013? Show calculations.

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Definitions:

Imports

refer to goods or services purchased from other countries, which are brought into a country to meet domestic demand or for further processing.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a nation's gross domestic product.

United States

A country in North America comprising 50 states and a federal district, known for its significant global economic and political influence.

Bretton Woods System

A monetary order negotiated in 1944 which established a system of fixed exchange rates, leading to the creation of the International Monetary Fund (IMF) and the World Bank.