Solution-Compute net cash provided or used by investing

Compute net cash provided or used by investing activities

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Reference no: EM131790747

Exercise - Cash Provided by Operating, Investing, and Financing Activities

The balance sheet data of Wyeth Company at the end of 2010 and 2009 follow.

	2010	2009
Cash	$30,000	$35,000
Accounts receivable (net)	55,000	45,000
Merchandise inventory	65,000	45,000
Prepaid expenses	15,000	25,000
Equipment	90,000	75,000
Accumulated depreciation-equipment	(18,000)	(8,000)
Land	70,000	40,000
	$307,000	$257,000

Accounts payable	$65,000	$52,000
Accrued expenses	15,000	18,000
Notes payable-bank, long term	-0-	23,000
Bonds payable	30,000	-0-
Common stock, $10 par	189,000	159,000
Retained Earnings	8,000	5,000
	$307,000	$257,000

Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash. Equipment costing $13,000 was sold for $3,000; book value of the equipment was $6,000. Cash dividends of $9,000 were declared and paid during the year.

Instructions - Compute net cash provided or used by:

(a) operating activities

(b) investing activities

Reference no: EM131790747

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Compute net cash provided or used by investing activities

Reference no: EM131790747

Reference no: EM131790747

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