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Net cash flow for operations, investing and financing activities

Changes in the balance sheet accounts for My Two Sons company from 6/30/Year 6 to 6/30/Year 7 are:
Increase or
(Decrease)
Cash $40,000
Accounts Receivable 100,000
Inventory 150,000
Long-term investments 100,000
Long-lived assets (100,000)
Accumulated Depreciation (30,000)
Accounts payable (20,000)
Mortgage payable (100,000)
Bonds payable 200,000
Common stock, $1 par 150,000
Additional paid-in capital 50,000
Retained earnings 40,000

Additional information for Year 7:
*Bonds were issued for cash at face value.
*Net income was $240,000.
*Dividends of $200,000 were declared and paid.
*Common stock was issued for cash.
*A long-term investment was sold for $80,000 with no gain or loss.
*A new long-term investment was purchased for $180,000.
*Long-lived assets that cost $300,000 were sold for $100,000. The book
value of those assets was $75,000 at the time of sale.
*New long-lived assets were purchased for cash.

Based on the above information, what is 1) the net cash flow from operations for Year 7; 2)the net cash flow from investing activities for Year 7; and 3) the net cash flow from financing activities for Year 7? Include figure and whether it is inflow or outflow.

Solution Preview

Based on the above information, what is 1) the net cash flow from operations for Year 7; 2)the net cash flow from investing activities for Year 7; and 3) the net cash flow from financing activities for Year 7? Include figure and whether it is inflow or outflow.

"Answer attached"

MY TWO SONS COMPANY

STATEMENT OF CASH ...

Solution Summary

Excel spreadsheet attached looks at changes to balance sheet accounts for My Two Sons and finds the net cash flow for various years and activities.

$2.19