The following information was provided by the treasurer of SuretThe following information was provided by the treasurer of Surety, Inc., for the year 2012:
a. Cash sales for the year were $50,000; sales on account totaled $60,000.
b. Cost of goods sold was 50% of total sales.
c. All inventory is purchased on account.
d. Depreciation on equipment was $31,000 for the year.
e. Amortization of goodwill was $2,000.
f. Collections of accounts receivable were $38,000.
g. Payments on accounts payable for inventory equaled $39,000.
h. Rent expense paid in cash was $11,000.
i. The company issued 20,000 shares of $10-par stock for $240,000.
j. Land valued at $106,000 was acquired by issuance of a bond with a par value of $100,000.
k. Equipment was purchased for cash at a cost of $84,000.
1. Dividends of $46,000 were declared but not yet paid.
m. The company paid $15,000 of dividends that had been declared the previous year.
n. A machine used on the assembly line was sold for $12,000. The machine had a book value of $7,000.
o. Another machine with a book value of $500 was scrapped and was reported as an ordinary loss. No cash was received on this transaction.
p. The cash account increased $191,000 during the year to a total of $274,000.
Required:
1. Compute the beginning balance in the cash account.
2. How much cash was provided by (or used in) operating activities?
3. How much cash was provided by (or used in) investing activities?
4. How much cash was provided by (or used in) financing activities?
5. Would all the above items, (a) through (p), be reported on a cash flow statement? Explain.
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