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Cash Flow Computations

Cash Flow Computations
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.
Cash receipts from:
Customers . . . . . . . . . . . . . . . . . . . . . $270,000
Investments by owners . . . . . . . . . . . 54,000
Sale of building . . . . . . . . . . . . . . . . . 90,000
Proceeds from bank loan . . . . . . . . . . 60,000
Cash payments for:
Wages . . . . . . . . . . . . . . . . . . . . . . . $ 82,000
Utilities . . . . . . . . . . . . . . . . . . . . . . 3,000
Advertising . . . . . . . . . . . . . . . . . . . . 4,000
Rent . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Taxes . . . . . . . . . . . . . . . . . . . . . . . . 67,000
Dividends . . . . . . . . . . . . . . . . . . . . . 20,000
Repayment of principal on loan . . . . . 40,000
Purchase of land . . . . . . . . . . . . . . . . 106,000
Cash balance at beginning of year . . . . $386,000

Solution Preview

1. Net cash flow provided (used) by operating activities

Cash Receipts from Customer 270,000
Total Cash Receipts 270,000
Cash ...

Solution Summary

The solution explains how to calculate the cash flows under operating, investing and financing activities.

$2.19