The Starting and Ending Balances for Relevant Asset and Liability

question 104

Essay

The starting and ending balances for relevant asset and liability accounts that changed during the year are presented below.Net income was $650,000 for the year and dividends paid were $150,000.Depreciation expense for 2018 was $7,000,and all other changes in accumulated depreciation and property,plant,and equipment related to the sale of property at book value.No other non-cash transactions occurred.Use this information to calculate the net cash inflows (outflows)from investing and financing activities in 2018.
$$\begin{array} { | l | r | r | } & \text { Beginning } & \text { Ending } \\\hline \text { Short-temnotes receivable } & \$ 40,000 & \$ 45,000 \\\hline \text { Bonds receivable } & 50,000 & 150,000 \\\hline \text { Property, plart, and equipment } & 850,000 & 825,000 \\\hline \text { Accurmulated depreciation } & 10,000 & 16,000 \\\hline \text { Shart-temnotes payable } & 237,000 & 187,000 \\\hline \text { Bonds payable } & 350,000 & 500,000 \\\hline \text { Contributed capital } & 400,000 & 480,000 \\\hline\end{array}$$

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