The balance sheet data of New World Company at the end of 2019 and 2020 follow:
(C) Land was acquired for $200,000 in exchange for common stock, par $200,000.
(D) During the year, all equipment purchases were for cash.
(E) Equipment costing $20,000 was sold for $8,000. The book value of the equipment was $16,000 and the loss was included in net income.
(F) Cash dividends of $40,000 were paid during the year.
Compute net cash flows from operating activities.
Compute net cash flows from investing activities.
Compute net cash flows from financing activities.
Question 4
The balance sheet data of New World Company at the end of 2019 and 2020 follow:
2020:
Cash: $100,000
Accounts receivable (net): $240,000
Merchandise inventory: $280,000
Prepaid expenses: $40,000
Buildings and equipment: $360,000
Accumulated depreciation - buildings and equipment: $72,000
Land: $32,000
Totals: $1,308,000
2019:
Cash: $140,000
Accounts receivable (net): $180,000
Merchandise inventory: $180,000
Prepaid expenses: $100,000
Buildings and equipment: $300,000
Accumulated depreciation - buildings and equipment: $160,000
Land: $0
Totals: $1,028,000
Accounts payable: $272,000
Accrued expenses: $220,000
Notes payable - long-term: $48,000
Mortgage payable: $72,000
Common stock, $10 par: $0
Retained earnings (deficit): $160,000
Totals: $1,308,000
Additional information:
(A) Net income for 2020 was $132,000
(B) Depreciation expense for the year was $44,000
