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I got the first part already. I just need to know how to get the answer for cash outflow for inventory on statement of cash
I got the first part already. I just need to know how to get the answer for cash outflow for inventory on statement of cash flows. Thanks
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. ! Required information [The following information applies to the questions displayed below.) The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Cash Inventory Common Stock Retained Earnings Beginning Balances $6,050 3,180 7,400 1,830 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,230. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $245 cash. 3. Returned $500 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $240 allowance. 5. Sold merchandise that cost $2,700 for $4,900 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $130 cash. 7. Paid $2,820 on the merchandise purchased in Event 1. TA Arcanine DAIANCAC In A minne cian NOT All Colle in the Arcanine TITIAC TOP RATAinan Farninno" conmn MAV ranure An innuit. Required information Answer is complete and correct. TERRY'S AUTO SHOP Assets Events Cash + Effect of Events on the Financial Statements Liabilities Stockholders' Equity Accounts Common Retained Inventory Payable Stock Earnings 3,180 = 7,400 1,830 4,230 4,230 + = + Accounts Titles for Retained Earnings 6,050 + + Beg. Bal. 1. Pur. Inv. 2. Transport 3. Ret. Inv. (245) + 245 = + (500) = + (500) (240) 4. Allow + (240) = + + 5a. Sales 4,900 5b. Cost (2,700) 4,900 Sales (2,700) Cost of sales (130) Transportation out expenses 6. Trang + + 7. Paid AP (130) (2,820) 7,755 (2,820) + End Bal. 4,215 + 670 7,400 + 3,900 work (LO4-1, 4-2, 4-4, 4-6) i Saved 5 Required information Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) of 3 TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities Cash inflow from customers $ 4.900 Cash outflow for expenses (130) Cash outflow for inventory pok nt $ 4,770 nt Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 4,770 6,050 10,820 $
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