Question 1 Berry Corporation reported the following cash transactions for last y

ID: 2535622 • Letter: Q

Question

Question 1 Berry Corporation reported the following cash transactions for last year. Issued common stock at $76 per share $190,000 Paid dividends to stockholders at year end 65,550 Received dividends from investments in other companies 30,540 Purchased bonds issued by City of Metropolis 48,430 Borrowed money from City Bank 25,810 Made payment to City Bank on loan 4,220 Purchased office equipment 11,390 Received interest payment on City of Metropolis bonds 2,130 Collapse question part (a) Prepare the investing section of Berry’s statement of cash flows. (Enter amounts that decrease cash using either a negative sign preceding the number e.g. -4,527 or parentheses e.g. (4,527).) Berry Corporation Statement of Cash Flows (Partial) $ $

Explanation / Answer

Solution:

Investing Section of Berry’s statement of cash flows

Cash Flow from Investing Activities:

Dividend Received

$30,540

Investment Purchased (Bonds of City of Metropolis)

-$48,430

Purchased Office Equipment

-$11,390

Interest received

$2,130

Net Cash used by Investing Activities

-$27,150

Note ---

Followings are the financing activities, hence not considered in Investing activities section of cash flow statement

Issued common stock at $76 per share $190,000

Paid dividends to stockholders at year end 65,550

Borrowed money from City Bank 25,810

Made payment to City Bank on loan 4,220

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