|Momber's Flooring Company|
|Net fixed assets||8,200||8,200|
|Total Liabilities and Equity||15,000||16,600|
Given the Balance Sheets for Momber's Flooring Company above for the years ending December 31, 2011 and 2012, find Net Cash Flows from Investing Activities for 2012 assuming the following income statement data:
Net income (2012) = $ 4,210 and Depreciation (2012) = $ 1,605
Round your answer as a whole number and record without a dollar sign and without commas. For example, record $3,204.854 as 3205. To show a negative cash flow (i.e., a net cash outflow), place a negative sign before your answer with no space between the negative sign and the number. Thus, record negative 5,432 as -5432.
Cash flow from investment activities is the cash flow related to non-current assets.
Net fixed assets for 2011= $8,200
Net fixed assets for 2012= $8,200
Depreciation for 2012= $1,605
Therefore, Cash flow for year 2012 due to fixed assets= 8200-8200+1605 = -$1,605
Value of land for 2011= $1,000
Value of land for 2012= $2,000
Therefore, cash flow for land during year 2012= 1000-2000 = -$1,000
Cash flow from investment activities= -1605 – 1000 = -2605 (negative or net cash outflow)
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