Concept #1: Financing Activities Summary
Example #1: Financing Activities
Practice: Which of the following is a cash flow from financing activities?
Practice: The exchange of land worth $110,000 for 50,000 shares of common stock in the company would be an:
Practice: Turkey Company is preparing its Statement of Cash Flows and gathered the following information:
1. Since the previous year: the cash account increased by $35,000, land increased by $40,000, Equipment decreased by $15,000, Accumulated Depreciation – Equipment increased by $6,000, Retained Earnings increased by $340,000, and Bonds Payable increased by $100,000,
2. Depreciation expense for Equipment totaled $16,000.
3. Equipment with a purchase price of $15,000 was sold for a $2,000 gain.
4. Turkey loaned $24,000 to Potatoes Company signing a long-term note receivable.
5. Net income was $420,000.
6. Turkey issued 100,000 shares of $5 par value common stock. The additional paid-in capital from this transaction was $300,000.
What is Turkey Company’s net cash flow from financing activities?