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A cattle ranch started last year with $64000 in its cash account. Within the year, all the events that affected cash are summarized in the
A cattle ranch started last year with $64000 in its cash account. Within the year, all the events that affected cash are summarized in the following table:
Cash paid for operating expenses $210,000
Net increase in short-term debt $50,000
Cash paid for purchasing of breeding stock $45,000
Cash paid for income taxes $25,000
Withdrawals $20,000
Repayment of term debt $22,000
Cash received from operations $220,000
a) Arrange the information in a statement of cash flows showing net cash provided by operating activities, investing activities, and financing activities as well as the net increase(decrease) in cash and the cash at the end of the year.
b) Putting oneself in the position of a lender providing operating credit to this cattle ranch for the upcoming year, discuss any concerns that you may have based on the information displayed in the statement of cash flows prepared.
Cash paid for operating expenses $210,000
Net increase in short-term debt $50,000
Cash paid for purchasing of breeding stock $45,000
Cash paid for income taxes $25,000
Withdrawals $20,000
Repayment of term debt $22,000
Cash received from operations $220,000
a) Arrange the information in a statement of cash flows showing net cash provided by operating activities, investing activities, and financing activities as well as the net increase(decrease) in cash and the cash at the end of the year.
b) Putting oneself in the position of a lender providing operating credit to this cattle ranch for the upcoming year, discuss any concerns that you may have based on the information displayed in the statement of cash flows prepared.
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