Modern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it reported the following activities: Net income $ 4,535 Purchase of equipment 911 Borrowings under line of credit (bank) 1,457 Proceeds from issuance of common stock 15 Cash received from customers 29,564 Payments to reduce notes payable (long-term) 50 Sale of investments 138 Proceeds from sale of equipment 6,994 Dividends paid 281 Interest paid 94

Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement.

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Business

Billy Lindsey

9 February, 05:21

Modern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it reported the following activities: Net income $ 4,535 Purchase of equipment 911 Borrowings under line of credit (bank) 1,457 Proceeds from issuance of common stock 15 Cash received from customers 29,564 Payments to reduce notes payable (long-term) 50 Sale of investments 138 Proceeds from sale of equipment 6,994 Dividends paid 281 Interest paid 94

Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement.

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Dominick Noble · Answer 1

Answer and Explanation:

The preparation of the cash flows from investing and financing is presented below:

Cash flows from investing activities:

Purchase of equipment - $911

Sale of investment $138

Sale of equipment $6,994

Net cash flow from investing activities $6,221

Cash flow from financing activities

Borrowing $1,457

Issue common Stock $15

Payment of notes payable - $50

Dividend paid - $281

Net cash flow from financing activities $1,141

The positive amount reflects the cash inflow and negative amount reflects the cash outflow