Effect of transactions on cash flows state the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000. sold 7,000 shares of $30 par common stock for $69 per share. sold equipment with a book value of $45,100 for $64,900. purchased land for $417,000 cash. purchased a building by paying $85,000 cash and issuing a $100,000 mortgage note payable. sold a new issue of $320,000 of bonds at 99. purchased 5,400 shares of $20 par common stock as treasury stock at $39 per share. paid dividends of $2.00 per share. there were 33,000 shares issued and 5,000 shares of treasury stock.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51