The balance sheet and income statement for Bertha’s Bridal Boutique are presented along with some additional information about the accounts. You are to answer the questions that follow concerning cash flows for the period.

a. All accounts receivable and accounts payable are related to trade merchandise. 

Accounts payable are recorded net and always are paid to take all the discounts allowed. The allowance for doubtful accounts at the end of 20X1 was the same as at the end of 20X0; no receivables were charged against the allowance during 20X1.

b. The proceeds from the note payable were used to finance a new warehouse. Capital stock was sold to provide additional working capital.

Required:

1. Calculate the cash collected during 20X1 from accounts receivable.

2. Calculate the cash payments during 20X1 on accounts payable to suppliers.

3. Calculate the cash provided from operations for 20X1.

4. Calculate the cash inflows during 20X1 from financing activities.

5. Calculate the cash outflows from investing activities during 20X1.

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December 31, 20X1 20X0 Assets Current assets $ 450,000 692,000 723,000 50,000 $ 364,000 625,000 610,000 70,000 Cash Accounts receivable-net Inventory Prepaid expenses Total current assets Long-term investments Property, plant, and equipment Less: Accumulated depreciation 1,915,000 150,000 1,669,000 20,000 815,000 1,622,000 ( 100,000) (75,000) 1,522,000 740,000 Total assets $ 3,587,000 $ 2,429,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued expenses Dividends payable $ 399,000 185,000 50,000 $ 451,000 179,000 Total current liabilities 634,000 750,000 630,000 Notes payable-due 20X4 Stockholders' Equity Common stock 1,300,000 1,400,000 803,000 Retained earnings 499,000 Total stockholders' equity 2,203,000 1,799,000 Total liabilities and stockholders' equity $ 3,587,000 $ 2,429,000