Question

The following information is related to Towson Company's fiscal year 2018.

            Income Statement:

                        Net Income                             $2,100,000

                        Depreciation Expense 400,000

                        Loss on Sale of Plant Assets 45,000

                        Interest Expense                             5,000

            Balance Sheet - 12/31/17: Increase (Decrease)

                        Accounts Payable decrease 40,000

                        Plant Assets - Purchased        250,000

                        Plant Assets - Disposals         (100,000)

                       

            Additional Information:

                        Common Stock exchanged for outstanding Long Term Notes Payable of $125,000

                        Dividends paid were $30,000

Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets ( ).

Answer 1

1. Net Cash Flows from Operating Activities -

Not Non Cash -

Interest Expense - 5,000 It is paid on borrowings

Below are the Investing Activities -

Plant Assets - Purchased        250,000

Plant Assets - Disposals         (100,000)

Below are the financing Activities -

Dividends paid were $30,000

Below are non cash financing Activities -

Common Stock exchanged for outstanding Long Term Notes Payable of $125,000