Explore BrainMass

Explore BrainMass

    Net cash flow for operations, investing and financing activities

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:15 pm ad1c9bdddf
    https://brainmass.com/business/accounting/my-two-sons-co-find-net-cash-flow-for-operations-investing-and-financing-activities-222252

    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

    ADVERTISEMENT