Worldwide Corp.'s statement of financial position accounts as of December 31,2017 and 2016 and information relating to 2017 activities are presented below.
Information relating to 2017 activities:
• Net income for 2017 was $1,220,000.
• Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2017 for $360,000.
• A long-term investment was sold in 2016 for $345,000.There were no other transactions affecting long-term investments in 2017.
• 20,000 ordinary shares were issued in 2017 for $25 a share.
• Short-term investments consist of treasury bills maturing on 9/30/18.
a.What is the amount of net cash flows from operating activities?
b.What is the amount of net cash flows from financing activities?
c.What is the amount of net cash flows from investing activities?
d.Reconcile ending cash balance with beginning cash balance.

Question

Worldwide Corp.'s statement of financial position accounts as of December 31,2017 and 2016 and information relating to 2017 activities are presented below.
  Information relating to 2017 activities:
• Net income for 2017 was $1,220,000.
• Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2017 for $360,000.
• A long-term investment was sold in 2016 for $345,000.There were no other transactions affecting long-term investments in 2017.
• 20,000 ordinary shares were issued in 2017 for $25 a share.
• Short-term investments consist of treasury bills maturing on 9/30/18.
a.What is the amount of net cash flows from operating activities?
b.What is the amount of net cash flows from financing activities?
c.What is the amount of net cash flows from investing activities?
d.Reconcile ending cash balance with beginning cash balance.

Quizplus · Accepted Answer

The Answer of Worldwide Corp.'s statement of financial position accounts as of December 31,2017 and 2016 and information relating to 2017 activities are presented below.
  Information relating to 2017 activities:
• Net income for 2017 was $1,220,000.
• Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2017 for $360,000.
• A long-term investment was sold in 2016 for $345,000.There were no other transactions affecting long-term investments in 2017.
• 20,000 ordinary shares were issued in 2017 for $25 a share.
• Short-term investments consist of treasury bills maturing on 9/30/18.
a.What is the amount of net cash flows from operating activities?
b.What is the amount of net cash flows from financing activities?
c.What is the amount of net cash flows from investing activities?
d.Reconcile ending cash balance with beginning cash balance.