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    altosal's Avatar
    altosal Posts: 33, Reputation: 1
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    #1

    Dec 9, 2010, 06:11 PM
    Cash Flows Statement
    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's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    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's Avatar
    altosal Posts: 33, Reputation: 1
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    #3

    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's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #4

    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?
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