Presented below are selected financial statement items for Rowe Corporation for December 31, 2012.
|
Inventory
|
$55,000
|
Cash paid to purchase equipment
|
$30,000
|
|
Cash paid to suppliers
|
154,000
|
Equipment
|
40,000
|
|
Buildings
|
400,000
|
Revenues
|
200,000
|
|
Common stock
|
20,000
|
Cash received from customers
|
172,000
|
|
Cash dividends paid
|
6,000
|
Cash received from issuing
|
|
|
|
bonds payable
|
40,000
|
Instructions
(a) Determine which items should be included in a statement of cash flows, and then prepare the statement for Rowe Corporation.
(b) Comment on the adequacy of net cash provided by operating activities to fund the company"s investing activities and dividend payments.