Question:
Refer to the situation described in BE 4–11. Prepare the cash flows from investing and financing activities
sections of HHC’s statement of cash flows.
Answer:
Cash flows from investing activities:
Proceeds from note receivable collection $100,000
Sale of land 40,000
Purchase of equipment (120,000)
Net cash flows from investing activities $20,000
Cash flows from financing activities:
Issuance of common stock $200,000
Payment of dividends (30,000)
Net cash flows from financing activities 170,000
Refer to the situation described in BE 4–11. Prepare the cash flows from investing and financing activities
sections of HHC’s statement of cash flows.
Answer:
Cash flows from investing activities:
Proceeds from note receivable collection $100,000
Sale of land 40,000
Purchase of equipment (120,000)
Net cash flows from investing activities $20,000
Cash flows from financing activities:
Issuance of common stock $200,000
Payment of dividends (30,000)
Net cash flows from financing activities 170,000
