91. 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.
92. Information for Keewatin Inc for 2013 was as follows:
a) On December 31, sold a piece of equipment with a carrying value of $75,000 for $80,000 cash resulting in a $5,000 loss.
b) Amortization expense for the year was $120,000.
c) On June 30, issued 10% bonds for $500,000.
d) December 31, paid $25,000 for six months interest expense on the bonds.
e) Paid $10,000 on a long-term note payable.
f) Bought shares in another company for $200,000.
g) Inventory increased $25,000 over the year.
h) The company incurred a loss for the year of $115,000.
i) The company paid dividends of $30,000 during the year.
j) Over the year the company increased its overdraft at the bank $15,500.
Required:
A) What was the cash flow from operations for Keewatin for 2013? Show calculations.
B) What was the cash flow from investing activities for Keewatin for 2013? Show calculations.
C) What was the cash flow from financing activities for Keewatin for 2013? Show calculations.