Question

Use the following information for the next three (3) questions. MARIKINA Company had the following cash transactions:

Cash collected from customers 12,500

Cash received from a loan 8,000

Cash paid for wages payable 5,750

Cash paid for the purchase of a building 15,000

Cash received for the issuance of new shares of stock 2,600

Cash received from sale of land 6,400

Cash paid for rent 2,500

Cash paid for dividends 1,500

1.What is the net cash provided by operating activities?

2.What is the net cash used by investing activities?

3.What is the net cash provided by financing activities?

Answer 1

	Cash flow from Operating Activities
	Cash Collected from customers	$          12,500
	Total Cash Inflows		$          12,500
	Cash paid for Wages	$           (5,750)
	Cash paid for Rent	$           (2,500)
	Total Cash Outflows		$           (8,250)
1	Net Cash provided by operating activities		$            4,250
	Cash flow from Investing Activities
	Sale of Land	$             6,400
	Purchase of Building	$         (15,000)
2	Net Cash used by investing activities		$          (8,600)
	Cash flow from Financing Activities
	Borrowed Loan	$             8,000
	Issue of common stock	$             2,600
	Dividend paid	$           (1,500)
3	Net Cash provided by financing activities		$            9,100