Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company provides the following information related to its cash flows during the year. Inflows: begin{tabular}{|l|r|} hline Issue common stock & $91,000 hline Sell

image text in transcribedimage text in transcribed

A company provides the following information related to its cash flows during the year. Inflows: \begin{tabular}{|l|r|} \hline Issue common stock & $91,000 \\ \hline Sell inventory to customers & $112,000 \\ \hline Issue notes payable & $44,000 \\ \hline Sell land & $70,000 \\ \hline Earn interest on investments & $3,000 \\ \hline Sell patent & $57,000 \\ \hline \end{tabular} Outflows: \begin{tabular}{|l|r|} \hline Purchase equipment & $145,000 \\ \hline Purchase inventory & $48,000 \\ \hline Purchase treasury stock & $31,000 \\ \hline Repay notes payable & $68,000 \\ \hline Pay salaries & $59,000 \\ \hline Pay dividends & $12,000 \\ \hline \end{tabular} \begin{tabular}{|lr|} \hline Beginning cash & $53,000 \\ \hline \end{tabular} Required: 1. Use the information above to calculate the following amounts: (a) Operating cash flows (b) Investing cash flows (c) Financing cash flows 2. Calculate the ending cash balance. Requirement 1(a): Calculate Operating Cash Flows (Use cells A2 to B20 from the given information above to complete this question. Input cash inflows as positive values and cash outflows as negative values.) Net operating cash flows Requirement 1(b): Calculate Investing Cash Flows (Use cells A2 to B20 from the given information above to complete this question. Input cash inflows as positive values and cash outflows as negative values.) Net investing cash flows Requirement 1(c) : Calculate Financing Cash Flows (Use cells A2 to B20 from the given information above to complete this question. Input cash inflows as positive values and cash outflows as negative values.) Net financing cash flows Requirement 2: Calculate Ending Cash Balance (Use cells A2 to B20 from the given information above to complete this question. Input cash inflows as positive values and cash outflows as negative values.) Beginning cash Net operating cash flows Net investing cash flows Net financing cash flows Ending cash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cross-Border Mergers And Acquisitions UK Dimensions

Authors: Moshfique Uddin, Agyenim Boateng

1st Edition

0415836603, 9780415836609

More Books

Students also viewed these Accounting questions

Question

Show by resolution that B follows from S where S = {A V B, C}.

Answered: 1 week ago