Question

# Momber's Flooring Company 2011 2012 Cash            500            800 Accounts receivable        1,400 &

 Momber's Flooring Company 2011 2012 Cash 500 800 Accounts receivable 1,400 1,200 Inventory 3,900 4,400 Net fixed assets 8,200 8,200 Land 1,000 2,000 Total Assets 15,000 16,600 Notes payable 1,000 600 Accounts payable 3,000 2,000 Accruals 500 900 Long-term debt 3,600 5,400 Common Stock 2,500 2,200 Retained earnings 4,400 5,500 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.

Given,

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

Also given,

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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