Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Corporation X just opened business on Jan 1 2021 by a contribution in cash from its shareholders, which was entirely paid of 3,000$. X receives

Corporation X just opened business on Jan 1 2021 by a contribution in cash from its shareholders, which was entirely paid of 3,000$.

X receives a bank loan on Jan 2 - for 2,000$.

It repays by the end of the year 250$ on the bank loan.

Interest on the bank loan has accrued by year end for 10$, but it is not paid by the end of the year.

On Nov. 8 X buys merchandise, for cash, for 700$.

X sells on account all the merchandise on hand for 1,000$, on Nov. 10.

X also purchases for cash a telephone, for 500$, on Nov. 11.

X accountant depreciates the telephone by the year end for 50$.

X sells the telephone , on 30Jan 2021, for 475$, in cash.

Calculate:

  1. total cash flows from operating activities
  2. total cadh flow from financing activities
  3. total cash flow from investing activities
  4. total net cash flow
  5. payments to the suppliers
  6. the cash that appears on the Balance Sheet
  7. proceeds from capital increase
  8. the accural of interest
  9. bank loans repaid
  10. payments to suppliers of proprety, plant and equipment

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

Options Futures And Other Derivatives

Authors: John C. Hull

4th Edition

0130224448, 9780130224446

More Books

Students also viewed these Finance questions