Question
Use the transactions provided below to prepare a Cash Flow Statement Worksheet and answer the questions below. Transaction $ Received bank interest 400 Proceeds from
Use the transactions provided below to prepare a Cash Flow Statement Worksheet and answer the questions below.
Transaction | $ |
Received bank interest | 400 |
Proceeds from sale of building | 60 000 |
Receipt of dividend revenue | 1 350 |
Shares issued and cash received | 50 000 |
Payment of accounts payable | 9 500 |
Purchase of equipment for cash | 65 000 |
Cash sales | 19 000 |
Depreciation expense | 2 400 |
Payment of income tax | 1 750 |
Payment of dividends | 10 500 |
It will be necessary for you to prepare the Cash Flow Worksheet first to choose the correct solutions.
1. Calculate the total Operating inflow/outflow?
2. What is the total Investing inflow/outflow?
3. What is the total Financing inflow/outflow?
4. The profit/loss =
5. Calculate the total Net Cash from all activities?
6. Why would an entity prepare the cash flow statement?
7. What does "Net working capital" calculate?
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