Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cray Cray is a merchandiser of gag gifts. The company's net income for the prior year was $13,200. The beginning Retained Earnings reported on the
Cray Cray is a merchandiser of gag gifts. The company's net income for the prior year was $13,200. The beginning Retained Earnings reported on the Balance Sheet was $10,000. The ending Retained Earnings reported on the Balance Sheet was $8,900. The company began the year with $18,000 in cash. Its cash flow from operating activities for the year was $12,130 The following additional transactions occurred during the year: An old piece of equipment was sold for $1,500 cash and replaced with a new piece of equipment that cost S9,450. The company made a down payment using $450 from its bank account and financed the remaining balance by taking out a cash loan with the bank. 500 shares of common stock were issued at par for a total of $1,000 in cash The Dividends Payable account balance was S0 at the beginning and the end of the year. Answer the following given the above information: The company is not operating within its means O True O False The investing activities provided more cash than the investing activities used. O True O False The financing activities used more cash than the financing activities provided. O True O False The company's ending cash balance reported on the Balance Sheet is (enter an absolute value)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started