Cayla and Rebeka Company 320,000 52,700 15,100 Accrued Ex 182,600 1. New plant a

Question

Cayla and Rebeka Company 320,000 52,700 15,100 Accrued Ex 182,600 1. New plant assets costing $151,000 were purchased for cash during the year 2. Investments were sold at cost. 3. Plan $15,000 4. A cash dividend of $48,000was declared and paid during the year 5. Net Income for the year was reported as $122,660 t assets costing $36,000 with accumulated depreciation of $26,000 were sold for Required: Use the indirect method to determine the amount of cash from each of the three categories? Show negative amounts in parenthesis Fi ting Activities

Explanation / Answer

Cash flows from operating activities:

Net income $122660

Depreciation $9500

Gain on sale of plant assets ($5000)

Increase accounts receivable ($38800)

Increase Inventories ($19250)

Increase accounts payable $4420

Decrease in accrued expense ($3730)

Net cash flows from operating

activities.

Cash flows from investing activities:

Sale of plant assets $15000

Purchase of plant assets ($151000)

Sale of investments $17500

Net cash flows from investing ($48700)

activities.

Cash flows from financing activities:

Issue of stock $50000

Issue of bonds $70000

Dividends paid ($48000)

Net cash flows from financing $72000.

activities

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