## Accounting: Tools for Business Decision Making, 5th Edition

a) Preacher Corporation Statement of Cash Flows December 31, 2014 Cash flows from operating activities $\ \ \ \ \$ Cash receipts from operating activities $\ \ \ \ \ \ \ \ \ \$ $\$162,000\ \ \ \ \ $Cash payments for operating activities$\ \ \ \ \ \ \ \,\ \ \ \underline{(154,000)}\ \ \ \ \ \ \ \ \ \ $Net cash provided by operating activities$\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$\ \ \ \ 8,000$ Cash flows from investing activities $\ \ \ \ \$ Cash paid to purchase equipment $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $\ \ \ \underline{(20,000)}$ $\ \ \ \ \$ $\ \ \ \ \$ Net cash used by investing activities $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $\ \ \ (20,000)$ Cash flows from financing activities $\ \ \ \ \$ Issuance of common stock $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $\ \ \ \ \ \ \ \ \ \ \ \ \ 0$ $\ \ \ \ \$ Issuance of bonds payable $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $\ \ \ 40,000$ $\ \ \ \ \$ Dividends paid $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $\underline{\ \ \ \ \ (2,000)}$ $\ \ \ \ \$ $\ \ \ \ \$ Net cash provided by financing activities $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $\underline{38,000}$ Net increase in cash $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $26,000$ Cash at beginning of period $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $\underline{11,000}$ Cash at end of period $\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$ $\underline{\underline{37,000}}$ b) Cash on hand increased, but only because the company incurred debt in the form of bonds.