Luke Corporation is a manufacturer of home furnishings.Selected financial information about Luke is listed below:
• Borrowed $850,000 from a bank.
Purchased equipment for $210,000 in cash.
• Purchase investments for $285,000.
• Received dividends of $51,000 from an investment in Davis Corp.
• Paid dividends of $55,000.
• Issued shares of preferred stock for $500,000.
Repurchased outstanding common shares using $100,000 in cash.
• Purchased land for $100,000 cash.
• Paid $36,000 interest expense on a bank loan.
• Increased Inventories by $320,000
• Increased accounts receivable by $217,000.
• Increased accounts payable $85,000.
Use the above information to calculate Luke's:
a.cash used or provided by investing activities
b.cash used or provided by financing activities

Question

Luke Corporation is a manufacturer of home furnishings.Selected financial information about Luke is listed below:
• Borrowed $850,000 from a bank.
 Purchased equipment for $210,000 in cash.
• Purchase investments for $285,000.
• Received dividends of $51,000 from an investment in Davis Corp.
• Paid dividends of $55,000.
• Issued shares of preferred stock for $500,000.
 Repurchased outstanding common shares using $100,000 in cash.
• Purchased land for $100,000 cash.
• Paid $36,000 interest expense on a bank loan.
• Increased Inventories by $320,000
• Increased accounts receivable by $217,000.
• Increased accounts payable $85,000.
Use the above information to calculate Luke's:
a.cash used or provided by investing activities
b.cash used or provided by financing activities

Quizplus · Accepted Answer

The Answer of Luke Corporation is a manufacturer of home furnishings.Selected financial information about Luke is listed below:
• Borrowed $850,000 from a bank.
 Purchased equipment for $210,000 in cash.
• Purchase investments for $285,000.
• Received dividends of $51,000 from an investment in Davis Corp.
• Paid dividends of $55,000.
• Issued shares of preferred stock for $500,000.
 Repurchased outstanding common shares using $100,000 in cash.
• Purchased land for $100,000 cash.
• Paid $36,000 interest expense on a bank loan.
• Increased Inventories by $320,000
• Increased accounts receivable by $217,000.
• Increased accounts payable $85,000.
Use the above information to calculate Luke's:
a.cash used or provided by investing activities
b.cash used or provided by financing activities

Luke Corporation Is a Manufacturer of Home Furnishings