Reference no: EM132544990
Beal Company reported the following changes in the statement of financial position accounts during the current year:
Increase (Decrease)
ASSETS
Cash and cash equivalents 120,000
Short term investments 300,000
Accounts receivable, net ---
Inventory 80,000
Long term investments (100,000)
Property, plant and equipment 700,000
Accumulated depreciation ---
1,000,000
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities (5,000)
Dividend payable 160,000
Short term bank debt 325,000
Long term debt 110,000
Ordinary share capital, 10 par 100,000
Share premium 120,000
Retained earnings 290,000
1,100,000
The following additional information relates to the current year:
- net income for the current year was 790,000
- cash dividend of 500,000 was declared
- Equipment costing 600,000 and having a carrying amount of 350,000 was sold for 350,000.
- Equipment costing 110,000 was acquired through issuance of long term debt.
- A long term investment was sold for 135,000. There were no other transactions affecting long term investments.
- 10,000 ordinary shares were issued for 22 a share.
Question 1. What amount should be reported as net cash provided by operating activities?
a. 1,600,000
b. 1,040,000
c. 920,000
d. 705,000
Question 2. What amount should be reported as net cash used in investing activities?
a. 1,005,000
b. 1,190,000
c. 1,275,000
d. 1,600,000
Question 3. What amount should be reported as net cash used in financing activities?
a. 20,000
b. 45,000
c. 150,000
d. 205,000