Reference no: EM132430822

Questions -

Q1. The following information is related to Somerset Company's fiscal year 2018.

Income Statement:

Net Income $4,000,000

Depreciation Expense 650,000

Gain on Sale of Plant Assets 50,000

Interest Expense 5,000

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Receivable ($45,000)

Plant Assets - Purchased 250,000

Plant Assets - Disposals (100,000)

Additional Information:

Common Stock exchanged for outstanding Long Term Notes Payable of $150,000

Dividends paid were $35,000

Required - Use this information to prepare a partial Statement of Cash Flows for Somerset Company. Prepare only the section related to Cash Flows from Operating Activities.

Q2. The following information is related to Towson Company's fiscal year 2018.

Income Statement:

Net Income $3,400,000

Depreciation Expense 550,000

Loss on Sale of Plant Assets 50,000

Interest Expense 5,000

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Payable decrease 15,000

Plant Assets - Purchased 250,000

Plant Assets - Disposals (100,000)

Additional Information:

Common Stock exchanged for outstanding Long Term Notes Payable of $125,000

Dividends paid were $30,000

Required - Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets ( ).