Given the Following Data: Income Statement

question 28

Essay

Given the following data: Income Statement
For Year Ended Dec. 31, 2011 Additional information:
1.Increase in accounts receivable during 2011 - $25,000
2.Decrease in inventory during 2011 - $13,000
3.Decrease in accounts payable during 2001 - $28,000
4.Sale of old equipment for cash - $65,000
5.Dividends declared - $45,000; dividends paid - $40,000
6.New building acquired by issuing common shares - $42,000
7.Sold bonds for cash - proceeds of $75,000
What was net cash inflow (outflow) from operating activities during 2011?

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Definitions:

Periodic System of Inventory

An inventory system that updates inventory balances at the end of a certain period, involving periodic physical counts.

Inventory Volumes

The total amount of goods a company has available for sale or production at any given time, often measured in units or cost value.

Periodic Inventory System

An accounting method that updates inventory balance and cost of goods sold at the end of an accounting period.

Computerized Optical Scanning Equipment

Technology devices used for electronically converting images of text, handwriting, or printed documents into machine-encoded text or images.