Assuming U.S. GAAP, use the following data to answer question 14 to 15: S45 75 2

Question

Assuming U.S. GAAP, use the following data to answer question 14 to 15: S45 75 25 Net Income Depreciation Taxed paid Interest paid Dividends paid Cash received from sale of company building Sale of preferred stock Repurchase of common stock Purchase of machinery Paid off short-term debt Paid off long-term bank borrowings Issuance of bonds Gain on sale of building 10 40 35 30 20 10 50 20 14. Cash flow from investing activities is A. -$30 B. $20 C. $50 D. $70 15. Cash flow from financing activities is A. $30 B. $55 C. $75 D. $100

Explanation / Answer

STATEMENT OF CASH FLOW Amount in $ Amount in $ Cash flows from investing activities Purchase of Machienary $                    -20 Sales of Company Building $                      40 Purchase of Equipment Net cash used in investing activities $                      20 Cash flows from Financing activities Repurchase of Common Stock $                    -30 Issuance of Bonds $                      50 Sale of Preferred Stock $                      35 Paiid of Short Term Debt $                    -10 Paid of Long Term Bank Borrowing $                      -5 Dividends Paid $                    -10 $                      30 Net cash used in financing activities Answer = 14= Cash Flow from investing activities = Option B = $ 20 Answer = 15 = Cash Flow From Financing Activiies = Option A = $ 30

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