Chapter 10
The Statement of Cash Flow
511
Analysis
If Shaw Company’s net income during 2016 was $25,000, identify a potential concern from the
cash flows from financing activities section.
AP-9B (
2
)
The following events took place during 2016 to Robinson Company. Based on the information
given, calculate how much cash inflow or outflow there was from investing activities and
financing activities.
Gain on sale of equipment
$2,000
Sale of equipment (including gain)
$90,000
Purchase of long-term investments
$65,000
Issued company shares
$60,000
Received a bank loan
$40,000
Paid dividends
$20,000
Increase in inventory
$24,000
