Reference no: EM132492906

                                             2018                    2019                       change

Machinery and Equipment           41250000            51020900          9770900

Accrued Depreciation                   (15600000)       (19875000)       (4275000)

Preferred Stock                          2000000              2000000

common stock                             100000                 100000

APIC                                        9850000                9850000

Retained Earnings                      30000000                41452000             11452000

Total Equity                         39950000                      5343000

From the income statement you know that

Net income was $11502000

Depreciation was 4300000

• And from others notes you know that the truck originally valued at 29100 was sold for 1000 cash.

Question:

Question 1: What was the effect of the truck sale on operating cash flow?(Hint: what gain or loss was posted to operating?)

Question 2: What was the effect of the truck sale on investing cash flow? (Show cash received from sale and amount of equipment purchased)

Question 3: What was the effect of changes in the equity section of the balance sheet on financing on the cash flow?