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Important information about Compute Cash Flow from Operating Activities

Using the following data, compute cash flow from operating activities.

Cash Inflow (Outflow)
a. Cash received from sale of a building . . . . . . . . . . . . . . . . . . $ 5,600
b. Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (450)
c. Cash paid to repay a loan . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,000)
d. Cash collected from customers . . . . . . . . . . . . . . . . . . . . . . . 10,000
e. Cash paid for dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (780)
f. Cash paid for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . (1,320)
g. Cash received upon the issuance of new shares of stock . . . . 3,000
h. Cash received from tenants renting part of a building . . . . . . 600
i. Cash paid to purchase land . . . . . . . . . . . . . . . . . . . . . . . . . . (12,000)

From the following selected data, compute:
1. Net cash flow provided (used) by operating activities.
2. Net cash flow provided (used) by investing activities.
3. Net cash flow provided (used) by financing activities.
4. Net increase (decrease) in cash during the year.
5. The cash balance at the end of the year.

Solution Preview

1. Net cash flow provided (used) by operating activities.
CFO = Cash collected from customers -interest expense - income taxes + renting part of a building
CFO = 10000 - 450-1320-600 = 7630

2. Net ...

Solution Summary

computations given in detail

$2.19