Question

Sheffield Corp. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Sheffield Corp. for 2019 and 2018 are provided below. BALANCE SHEETS 12/31/19 Cash $408000 Accounts receivable 359000 Inventory 386000 Property, plant and equipment $610000 Less accumulated depreciation (319000) 291000 $1444000 12/31/18 $ 190000 218000 480000 $959000 (304000) 655000 $1543000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 177000 351000 359000 218000 339000 $1444000 $ 97000 390000 598000 218000 240000 $1543000 $8390000 7153000 1237000 INCOME STATEMENT For the Year Ended December 31, 2019 Sales revenue Cost of sales Gross profit Selling expenses $601000 Administrative expenses 194000 Income from operations Interest expense Income before taxes Income taxes Net income 795000 442000 74000 368000 97000 $ 271000 The following additional data were provided: 1. Dividends for the year 2019 were $194000. 2. During the year, equipment was sold for $238000. This equipment cost $350000 originally and had a book value of $291000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided (used) by financing activities is

Answer 1

Answer -

Calculation of Net Cash Provided (used) by Financing Activities

		Explanation	Amount ($)
I.	Dividends for the year 2019	Given in question	(194000)
II.	Sale of Equipment	Given in question	(238000)
Net Cash Provided by Financing Activities		I + II	(432000)