PROBLEM
1.Salzberg Company has the following information available at year-end:
Sale of bonds payable$ 75,000
Net additions to plant and equipment45,000
Purchase of another company162,500
Cash paid out to suppliers of inventory86,250
Cash received from customers125,000
Dividends paid to owners25,000
Issuance of common stock40,000
Sale of land17,500
Required:
Determine the net cash flow from (a) financing activities and (b) investing activities.
2.The RK Corporation reported the following information at the end of its most recent fiscal year:
Cash paid for insurance$ 2,400
Cash paid for dividends11,300
Cash paid to suppliers of inventory59,925
Cash paid for interest1,875
Cash collected from customers92,650
Cash received from disposal of equipment19,000
Cash paid for utilities4,700
Cash paid to employees15,750
Cash paid for equipment32,550
Required:
Determine each of the following amounts. Show your work neatly and clearly.
a.net cash flow from operating activities (direct basis)
b.net cash flow from financing activities
c.net cash flow from investing activities