he following selected account balances were taken from Buckeye Company\'s genera

Question

 he following selected account balances were taken from Buckeye Company's general ledger at
January 1, 2005 and December 31, 2005:                    January 1, 2005       December 31, 2005    Inventory              52,000                49,000   Accounts payable       40,000                71,000   Salaries payable        3,000                 9,000   Investments            68,000                75,000   Accounts receivable    83,000                56,000   Land                   58,000                88,000   Mortgage payable      120,000                95,000   Common stock          100,000               180,000   Retained earnings      22,000                35,000  The following information was taken from Buckeye Company's 2005 income statement:    Sales revenue                   $420,000   Cost of goods sold               300,000   Salaries expense                  94,000   Net income                      $ 26,000   Calculate the amount of cash paid to suppliers for purchases of inventory during 2005. Do
not use decimals in your answer. 

Explanation / Answer

Calculation of net cash flow from financing activities for 2005:

Repayment of Mortgage payable (120000-95000)

$       (25,000)

Issue of common stock (180000-100000)

$         80,000

Dividend Paid (22000+26000-35000)

$       (13,000)

Net cash flow from financing activities for 2005

$         42,000

Calculation of net cash flow from financing activities for 2005:

Repayment of Mortgage payable (120000-95000)

$       (25,000)

Issue of common stock (180000-100000)

$         80,000

Dividend Paid (22000+26000-35000)

$       (13,000)

Net cash flow from financing activities for 2005

$         42,000

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