Exercise 1-50 (Algorithmic) Statement of Cash Flows

Walters Inc. began operations on January 1, 2019. The following information relates to Walters' cash flows during 2019.

Cash received from owners	$201,900
Cash paid for purchase of land and building	126,900
Cash paid for advertising	34,200
Cash received from customers	139,600
Cash paid to purchase machine	32,200
Cash paid to employees for salaries	46,400
Cash paid for dividends to stockholders	37,900
Cash paid for supplies	28,700

Required:

1. Calculate the cash provided/used for each cash flow category. If a net amount is negative (a cash outflow), enter your answer as a negative number.

Net cash provided by operating activities	$
Net cash used by investing activities	$
Net cash provided by financing activities	$

2. Conceptual Connection: Comment on Walters' creditworthiness.

Walters has positive cash flow, especially from operations , showing the company is in a good financial position to pay its debts as they come due. The negative cash flow from investing activities is a sign of a growing company that is investing in revenue-producing assets.