Given the Following Selected Information,determine the Net Cash Flows from Investing

question 74

Essay

Given the following selected information,determine the net cash flows from investing activities and the net cash flows from financing activities:
Net income was $189,500 for the period.
Purchased 10,000 shares of common stock at $15 per share for the treasury.
Sold equipment with a carrying value of $32,500 at a gain of $6,000.
Purchased land and a building worth $450,000 by signing a ten-year note payable.
Issued $1,000,000 in bonds at par.
The beginning and ending retained earnings account balances were $418,000 and $534,000,respectively.There were no prior period adjustments during the period.
Wrote a check for $648,000 for the purchase of machinery.
Sold temporary investments in marketable securities with a $50,000 carrying value,at a loss of $17,500.
Cash dividends were declared and paid during the period.

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Definitions:

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.

Regulatory Compliance

Adhering to laws, regulations, guidelines, and specifications relevant to business operations or activities.

Zero-Based

A budgeting method where all expenses must be justified for each new period, starting from a "zero base," without reference to previous budgets.

Incremental

Pertaining to an increase or addition, especially in a series of small, regular steps.