The following selected account balances were taken from Buckeye Company\'s gener
ID: 2445103 • Letter: T
Question
The following selected account balances were taken from Buckeye Company's general ledger at January 1, 2005 and December 31, 2005: January 1, 2005 December 31, 2005 Unearned revenue 12,000 20,000 Inventory 59,000 42,000 Accounts payable 40,000 51,000 Salaries payable 9,000 3,000 Investments 75,000 68,000 Accounts receivable 63,000 96,000 Land 58,000 88,000 Mortgage payable 120,000 95,000 Common stock 100,000 180,000 Retained earnings 22,000 35,000 The following information was taken from Buckeye Company's 2005 income statement: Sales revenue $420,000 Cost of goods sold 300,000 Salaries expense 88,000 Loss on sale of investments 6,000 Net income $ 26,000 Calculate the amount of cash collected from customers during 2005. Do not use decimals in your answer.
Calculate the amount of cash paid to suppliers for purchases of inventory during 2005. Do not use decimals in your answer.
Calculate the net cash flow from financing activities for 2005. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234). Do not use decimals in your answer.
Explanation / Answer
Only mortgage payable and common stock are covered under Financing Activities from the above list.
Cash Flow from Financing Activity
Mortgage Payable (95,000 - 120,000) = (25,000)
issue of Common stock (180,000 - 100,000) = 80,000
Net Cash Flow from financing activity = $55,000