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altosal
Dec 9, 2010, 06:11 PM
Gain on sale of equipment 8,000
Purchase of Will Bonds ($300,000 face value) 275,000
Proceeds from sale of machinery 300,000
Dividends paid 50,000
Proceeds from sale of treasury stock 200,000

Net cash from investing and financing activities = 50,000 and 160,000 and the gain on sale of equipment should be added to net

Just Looking
Dec 10, 2010, 03:06 PM
I'm not sure what you (or they) are asking here? Is the problem asking you to do a Cash Flow Statement?

altosal
Dec 10, 2010, 05:03 PM
Using the information provided; what amount should be reported from investing activities and what amount should be reported from financing activities.

Just Looking
Dec 11, 2010, 01:59 PM
Okay, the cash flow statement is divided into three parts: changes in cash generated by operations, changes due to investing, and changes due to financing. Your problem is asking you to determine how each of those items would be classified.

I couldn't quite figure out how you got your 50,000 and 160,000, but I just looked at it briefly. Why don't you identify after each actifity if you think it is net operations, financing or investing?