The Gopher Companyâs transactions during 2018 included the following: Paid cash dividends of $1,200,000 Paid cash toward reducing a long-term note payable $900,000 Issued common stock in exchange for a building $750,000 Paid cash for bond interest $50,000 Bond discount amortization was recorded for $2,250 Issued preferred stock for cash $250,000 Sold a long-term stock investment with a book value of $79,000 for $123,000 cash Sold equipment with a book value of $90,000 for cash. The sale resulted in a $15,000 loss. Issued bonds with a maturity value of $2,000,000 in exchange for $1,950,000 cash Required: Determine the net cash flow from investing activities for 2018. Determine the net cash flow from financing activities for 2018.
The Gopher Companyâs transactions during 2018 included the following: Paid cash dividends of $1,200,000 Paid cash toward reducing a long-term note payable $900,000 Issued common stock in exchange for a building $750,000 Paid cash for bond interest $50,000 Bond discount amortization was recorded for $2,250 Issued preferred stock for cash $250,000 Sold a long-term stock investment with a book value of $79,000 for $123,000 cash Sold equipment with a book value of $90,000 for cash. The sale resulted in a $15,000 loss. Issued bonds with a maturity value of $2,000,000 in exchange for $1,950,000 cash Required: Determine the net cash flow from investing activities for 2018. Determine the net cash flow from financing activities for 2018.
Related questions
Spreadsheet and Statement of Cash Flows
The following information was taken from Lamberson Company's accounting records:
| Account Balances | ||
| Account Titles | January 1, 2016 | December 31, 2016 |
| Debits | ||
|---|---|---|
| Cash | $ 1,400 | $ 2,400 |
| Accounts Receivable (net) | 2,800 | 2,690 |
| Marketable Securities (at cost) | 1,700 | 3,000 |
| Allowance for Change in Value | 500 | 800 |
| Inventories | 8,100 | 7,910 |
| Prepaid Items | 1,300 | 1,710 |
| Investments (long-term) | 7,000 | 5,400 |
| Land | 15,000 | 15,000 |
| Buildings and Equipment | 32,000 | 46,200 |
| Discount on Bonds Payable | â | 290 |
| $69,800 | $85,400 | |
| Credits | ||
| Accumulated Depreciation | $16,000 | $16,400 |
| Accounts Payable | 3,800 | 4,150 |
| Income Taxes Payable | 2,400 | 2,504 |
| Wages Payable | 1,100 | 650 |
| Interest Payable | â | 400 |
| Note Payable (long-term) | 3,500 | â |
| 12% Bonds Payable | â | 10,000 |
| Deferred Taxes Payable | 800 | 1,196 |
| Convertible Preferred Stock, $100 par | 9,000 | â |
| Common Stock, $10 par | 14,000 | 21,500 |
| Additional Paid-in Capital | 8,700 | 13,700 |
| Unrealized Increase in Value of Marketable Securities | 500 | 800 |
| Retained Earnings | 10,000 | 14,100 |
| $69,800 | $85,400 | |
Additional information for the year:
| Sales | $ 39,930 | |
| Cost of goods sold | (19,890) | |
| Depreciation expense | (2,100) | |
| Wages expense | (11,000) | |
| Other operating expenses | (1,000) | |
| Bond interest expense | (410) | |
| Dividend revenue | 820 | |
| Gain on sale of investments | 700 | |
| Loss on sale of equipment | (200) | |
| Income tax expense | (2,050) | |
| Net income | $ 4,800 |
Dividends declared and paid totaled $700.
On January 1, 2016, convertible preferred stock that had originally been issued at par value were converted into 500 shares of common stock. The book value method was used to account for the conversion.
Long-term nonmarketable investments that cost $1,600 were sold for $2,300.
The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the year.
Equipment with a cost of $2,000 and a book value of $300 was sold for $100. The company uses one Accumulated Depreciation account for all depreciable assets.
Equipment was purchased at a cost of $16,200.
The 12% bonds payable were issued on August 31, 2016, at 97. They mature on August 31, 2026. The company uses the straight-line method to amortize the discount.
Taxable income was less than pretax accounting income, resulting in a $396 increase in deferred taxes payable.
Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by $300 to a $3,800 fair value at year-end by adjusting the related allowance account.
Prepare the statement of cash flows.
| LAMBERSON COMPANY Statement of Cash Flows For Year Ended December 31, 2016 |
|---|
Operating Activities:
Prepare the statement of cash flows.
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Adjustment for noncash income items:
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Adjustments for cash flow effects from working capital items:
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Net cash provided by operating activities ______________
Investing Activities:
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Net cash used for investing activities ____________
Financing Activities:
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Net cash provided by financing activites ____________
Cash, january 1, 2016 _____________
Cash, december 31, 2016 ____________
Compute the cash flow from operations to sales ratio and the profit margin ratio for 2016. Round your answers to one decimal place.
Cash flows from operations ratio ________:%
Profit margin:___________ %
