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21 September, 19:53

Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities

Net income $ 5,147

Purchase of property, plant, and equipment 2,084

Borrowings under line of credit (bank) 1,129

Proceeds from issuance of stock 26

Cash received from customers 37,179

Payments to reduce long-term debt 61

Sale of marketable securities 237

Proceeds from sale of property and equipment 6,892

Dividends paid 293

Interest paid 103

Purchase of treasury stock (stock repurchase) 2,571

Required: Based on this information, present the investing and financing activities sections of the cash flow statement. (List cash outflows as negative amounts.)

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  1. 21 September, 23:46
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    Answer and Explanation:

    The presentation of the investing and financing activities are presented below:

    Cash flow from investing activities

    Purchase of property, plant, and equipment - $2,084

    Proceeds from sale of property and equipment $6,892

    Sale of marketable securities $229

    Cash flow provided by investing activities $5,037

    Cash flow from financing activities

    Borrowings under line of credit $1,129

    Proceeds from issuance of stock $26

    Payments on long-term debt - $61

    Payment of dividends - $293

    Purchase of treasury stock - $2,571

    Net cash flow from financing activities $1,770

    The positive sign indicates the cash inflow and negative sign indicates the cash outflow
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