Trafalgar Industries, Inc. is a manufacturer of steel products for customers such as Home Depot, Lowe’s, Chrysler, Ford, and General Motors. In the year ended December 31, 2013, it reported the following activities: Net income (loss) $ (6,433 ) Purchase of equipment 14,140 Payments on notes payable to bank 207,344 Net proceeds from stock issuance 756 Depreciation 26,250 Proceeds from sale of equipment 12,530 Increase in accounts receivable 1,920 Proceeds from notes payable to bank 212,200 Based on this information, present the cash flows from the investing and financing activities sections of the cash flow statement.
Answer:-
Trafalgar Industries | |
Statement of Cash Flow (Using Indirect Method) PARTIAL | |
For the year ended DECEMBER 31,2013 | |
Particulars | Amount |
$ | |
Cash Flow from Financing activities | |
Payment on notes payable to bank | -207344 |
Net proceeds from stock issunace | 756 |
Proceeds from notes payable to bank | 212200 |
Net cash Flow from Financing activities (b) | 5612 |
Cash Flow from Investing activities | |
Purchase of equipment | -14140 |
Proceeds from sale of equipment | 12530 |
Net cash Flow from Investing activities (c) | -1610 |
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