1. New plant assets costing $140,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $80,500 and accumulated depreciation of $67,900 were sold for $2,100 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of $36,442 was declared and paid during the year.

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♦ Relevant knowledge

Cash flow in a business is a reference to the sums of money that a company has and invests at a particular date. It is a way of balancing the balance prior to and after the money, or cash, enters and out of the business. Cash flow is the earnings earned, typically from sales, as well as the expense that is paid out for example, the payroll.