Classifying Cash Flows Anna Dimetros is the bookkeeper for Russia Imports, Inc. (RII), a New York City–based company. Anna has collected the following cash flow information about RII for the most current year of operations. The cash balance at the beginning of the year was $105,000.

Required:
1. From the information provided, classify the cash flows for Russia Imports, Inc., according to operating, investing, and financing activities.
2. Determine the ending cash balance.

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Cash receipts: Cash received from issuance of stock Cash received from customers Cash received from interest at bank Cash received from borrowing at bank Total cash receipts. Cash payments: Cash paid for wages of employees $ 50,000 252,300 4,600 25,000 $331,900 $134,600 Cash paid to stockholders as dividends 5,500 Cash paid to bank for interest 7,200 Cash paid to bank to repay earlier loan 10,000 Cash paid for taxes 23,500 Cash paid for operating expenses 128,100 Cash paid for equipment 15,000 Total cash payments. $323,900