Question

In: Accounting

Prepare the cash flows from investing and financing activities sections of HHC's statement of cash flows.

The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC):

Cash Received from:

Customers ........................................................$660,000

Interest on note receivables ..........................12,000

Collection of note receivable.......................100,000

Sale of land ..........................................................40,000

Insurance of common stock..........................200,000

 

Cash paid for:

Interest on note payable .................................18,000

Purchase of equipment .................................120,000

Operating expenses .......................................440,000

Dividends to shareholders .............................30,000

 

Prepare the cash flows from investing and financing activities sections of HHC's statement of cash flows.

Solutions

Expert Solution

Cash Flows from Investing Activities:

Proceeds from note receivable collection    $100,000

Sale of land                                                      40,000

Purchase of equipment                                (120,000)   

Net cash flows from investing activities        $20,000

 

Cash Flows from Financing Activities:

Issuance of common stock                          $200,000

Payment of dividends                                    (30,000)
Net cash flows from financing activities        170,000

 

Cash Flows from Investing Activities: $20,000

Cash Flows from Financing Activities: $170,000

Renze Joy Candido answered 2 years ago
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