The following are summary cash transactions that occurred during the year for Hi
ID: 2478582 • Letter: T
Question
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC): Cash received from: Customers $ 670,000 Interest on note receivable 13,000 Collection of note receivable 110,000 Sale of land 41,000 Issuance of common stock 210,000 Cash paid for: Interest on note payable 19,000 Purchase of equipment 125,000 Operating expenses 445,000 Dividends to shareholders 31,000 Prepare the cash flows from investing and financing activities sections of HHC’s statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)
Explanation / Answer
Answer
HHC’s statement of cash flows
Figures in $
Particulars
Amount
Investing activities
Sale of land
a
41,000
Purchase of equipment
b
-1,25,000
Cash flow from investing activities (a+b)
-84,000
Financing activities
Issuance of common stock
c
2,10,000
Dividends to shareholders
d
-31,000
cash flow from financing activities (c+d)
1,79,000
HHC’s statement of cash flows
Figures in $
Particulars
Amount
Investing activities
Sale of land
a
41,000
Purchase of equipment
b
-1,25,000
Cash flow from investing activities (a+b)
-84,000
Financing activities
Issuance of common stock
c
2,10,000
Dividends to shareholders
d
-31,000
cash flow from financing activities (c+d)
1,79,000
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