Essay
Given the following selected information,determine the net cash flows from investing activities and the net cash flows from financing activities:
Net income was $189,500 for the period.
Purchased 10,000 shares of common stock at $15 per share for the treasury.
Sold equipment with a carrying value of $32,500 at a gain of $6,000.
Purchased land and a building worth $450,000 by signing a ten-year note payable.
Issued $1,000,000 in bonds at par.
The beginning and ending retained earnings account balances were $418,000 and $534,000,respectively.There were no prior period adjustments during the period.
Wrote a check for $648,000 for the purchase of machinery.
Sold temporary investments in marketable securities with a $50,000 carrying value,at a loss of $17,500.
Cash dividends were declared and paid during the period.
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