Question

The data below relate to Blues Traveler Company. The balance of cash at January 1, 20xx is $54,000. Answer questions 13 through 16.

Cash paid for inventory	$36,000
Cash received from issuing stock to the owners	$122,000
Cash paid to buy an office building	$40,000
Cash received from the bank on a 10-year loan	$63,000
Cash paid to the owners as dividends	$5,000
Cash received from selling on old pick-up truck	$6,000
Cash paid for utilities	$3,000
Cash paid for federal income taxes	$4,000
Cash paid to employees	$101,000
Cash paid for insurance	$7,000
Cash paid for office supplies	$2,000
Cash paid for interest payments	$6,500
Cash collected from customers	$274,000
Cash collected from selling stocks held as a long-term investment	$11,000

13. The net cash from operating activities is:

a. $120,000                 c. $114,500

b. $137,500                 d. None of the above

14. The net cash from investing activities is:

a. -$23,000                 c. -$53,000

b. -$56,500                 d. None of the above

15. The net cash from financing activities is:

a. $170,000                 c. $140,000

b. $135,500                 d. None of the above

16. The December 31, 20xx balance of cash is:

a. $325,500                 c. $197,500

b. $267,500                 d. None of the above

Answer 1

• All 4 questions that have been asked are answered through following Statement of Cash Flows

Cash flows from Operating Activities
Cash paid for inventory	$    (36,000.00)
Cash paid for utilities	$      (3,000.00)
Cash paid for federal income taxes	$      (4,000.00)
Cash paid to employees	$ (101,000.00)
Cash paid for insurance	$      (7,000.00)
Cash paid for office supplies	$      (2,000.00)
Cash collected from customers	$    274,000.00
Cash paid for interest payments	$      (6,500.00)
Net Cash flows from Operating Activities		$      114,500.00	Answer 13: Option 'C'
Cash flows from Investing Activities
Cash paid to buy an office building	$    (40,000.00)
Cash received from selling on old pick-up truck	$        6,000.00
Cash collected from selling stocks held as a long-term investment	$      11,000.00
Net Cash Flows from Investing Activities		$      (23,000.00)	Answer 14: Option 'A'
Cash Flows from Financing Activities
Cash received from issuing stock to the owners	$    122,000.00
Cash received from the bank on a 10-year loan	$      63,000.00
Cash paid to the owners as dividends	$      (5,000.00)
Net Cash Flows from Financing Activities		$      180,000.00	Answer 15: Option 'D' None of these
Net Increase (Decrease) in Cash		$      271,500.00
Beginning Cash Balance		$        54,000.00
Ending Cash Balance		$      325,500.00	Answer 16: Option 'A'