A company had the following transactions during the year:1. Paid rent for the next two years, $8,000.2. Purchased office supplies on account, $2,400.3. Purchased equipment, paying $12,000 cash and issuing a note payable for $4,000.4. Borrowed from the bank, $6,000.5. Paid employee salaries, $7,200.6. Paid $2,000 on account related to transaction 2 above.7. Paid dividends to stockholders, $2,800.8. Sold land for $10,000 that was purchased in a prior year for $7,500.9. Collected cash from customers for services provided, $25,700.Calculate cash flows from operating activities, investing activities, and financing activities.
What will be an ideal response?
Operating activities = $8,500; Investing activities = ?$2,000; Financing activities = $3,200
Operating cash flows = $25,700 ? $8,000 ? $7,200 ? $2,000 = $8,500.
Investing cash flows = $10,000 ? $12,000 = ?$2,000.
Financing cash flows = $6,000 ? $2,800 = $3,200.
You might also like to view...
The balance sheet amount of shareholders' equity does not, and is not intended to, provide the user of the financial reports with a measure of the market value of common equity
Indicate whether the statement is true or false
Which of the following is not an objective of the United Nations effort to prevent misconduct by transnational corporations?
A) respect for national sovereignty in countries where such companies operate B) adherence to the profit-oriented school of social responsibility C) adherence to sociocultural values D) respect for human rights
A good friend of yours wonders why you always seem to have the latest technology, long before anyone else. He then says, "I always want to wait until the bugs have been worked out. It saves me money and aggravation." Use diffusion of innovation theory to explain how you differ as consumers, and what this means to marketers.
What will be an ideal response?
Mineral Resource Company contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts, the distributor? A)?can substitute some other material for the tin
B)?is excused from the performance of its contracts. C)?is liable for breach of contract. D)?must still supply the tin needs of its customers.