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Question
The Gopher Company's transactions during 2012 included the following:
Paid cash dividends totaling $1,200,000.
Paid $900,000 cash toward a long-term note payable.
Issued common stock in exchange for a building valued at $750,000.
Issued bonds with a maturity value of $2,000,000 in exchange for $1,950,000 cash.
Paid $50,000 cash for bond interest.
$2,250 of bond discount amortization was recorded.
Issued preferred stock for $250,000 cash.
A long-term stock investment with a book value of $79,000 was sold for $123,000 cash.
Sold equipment for cash; the equipment's book value at the time of sale was $90,000 and the sale resulted in a $15,000 loss.
Required: 1. Determine the net cash flow from investing activities for 2012.
2. Determine the net cash flow from financing activities for 2012.
Answer
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