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Exercise 12-9 Cash flows from financing activities L.O. P3 a. Net income was $470,000. b. Issued common stock for $74,000 cash. c. Paid cash dividend of $15,000. d. Paid $125,000 cash to settle a note payable at its $125,000 maturity value. e. Paid $124,000 cash to acquire its treasury stock. f. Purchased equipment for $93,000 cash. Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)

Next: Exercise 12-10 Preparation of statement of cash flows (indirect) L.O. P1 [The following information applies to the questions displayed below.] Use the following financial statements and additional information. GECKO INC. Comparative Balance Sheets June 30, 2011 and 2010 2011 2010 Assets Cash $ 75,650 $ 51,100 Accounts receivable, net 75,800 58,800 Inventory 76,550 109,550 Prepaid expenses 5,850 5,600 Equipment 144,800 135,800 Accum. depreciation—Equipment (28,850 ) (10,850 ) Total assets $ 349,800 $ 350,000 Liabilities and Equity Accounts payable $ 28,400 $ 36,400 Wages payable 10,200 18,200 Income taxes payable 2,800 4,200 Notes payable (long term) 29,450 79,450 Common stock, $5 par value 206,000 156,000 Retained earnings 72,950 55,750 Total liabilities and equity $ 349,800 $ 350,000 GECKO INC. Income Statement For Year Ended June 30, 2011 Sales $ 879,000 Cost of goods sold 562,560 Gross profit 316,440 Operating expenses Depreciation expense $ 79,884 Other expenses 91,697 Total operating expenses 171,581 144,859 Other gains (losses) Gain on sale of equipment 2,813 Income before taxes 147,672 Income taxes expense 50,947 Net income $ 96,725 Additional Information a. A $50,000 note payable is retired at its $50,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $79,884 cash. d. Received cash for the sale of equipment that had cost $70,884, yielding a $2,813 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of merchandise inventory are on credit.
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Exercise 12-9 Cash flows from financing activities L.O. P3
a.Net income was $470,000.
b.Issued common stock for $74,000 cash.
c.Paid cash dividend of $15,000.
d.Paid $125,000 cash to settle a note payable at its $125,000 maturity value.
e.Paid $124,000 cash to acquire its treasury stock.
f.Purchased equipment for $93,000 cash.
  
Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)
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