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Morris Industries Reported the Following Cash Transactions for Last Year

Question 146

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Morris Industries reported the following cash transactions for last year.
 Borrowed money from First National Bank $100,000 Sold Morris common stock 50,000 Retired 50 shares of common stock 5,000 Sold investment in bonds issued by other companies 20,000 Paid interest on notes payable 3,000 Paid dividends to company’s stockholders 8,000 Collection by Morris for a loan made to another company 22,000 Sale of fully depreciated factory equipment 10,000\begin{array}{lr}\text { Borrowed money from First National Bank } & \$ 100,000 \\\text { Sold Morris common stock } & 50,000 \\\text { Retired } 50 \text { shares of common stock } & 5,000 \\\text { Sold investment in bonds issued by other companies } & 20,000 \\\text { Paid interest on notes payable } & 3,000 \\\text { Paid dividends to company's stockholders } & 8,000 \\\text { Collection by Morris for a loan made to another company } & 22,000 \\\text { Sale of fully depreciated factory equipment } & 10,000\end{array}
a.Prepare the investing section of Morris's statement of cash flows.
b.Prepare the financing section of Morris's statement of cash flows.

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