Question

 

net income	$92,600
dividends paid (cash)	50,500
depreciation expense	12,000
Net decrease in current assets	21,400
Issued new notes payable for cash	61,200
Paid cash for building	279,000
Net decrease in current liabilities	5,300
Sold investment for cash	350,000

The following questions are to be solved using the table above

1. What was the net cash flow from operating activities for the year?

2. What was the cash flow from (or used for) investing activities for the year?

3. What was the cash flow from (or used for) financing activities for the year?

4. What was the net change in cash for the year?

 

Answer 1

Answer:-1)-The net cash flow from operating activities for the year was $120700.

2)-The cash flow from (or used for) investing activities for the year was $71000.

3)-The cash flow from (or used for) financing activities for the year was $10700.

4)-The net change in cash for the year was $202400

Explanation:-

Statement of Cash Flow (Using Indirect Method)
For the year ended
Particulars		Amount
		$
Cash flow from opreating activities
Net Income		92600
Adjustments to reconcile net income to net cash provided by opreating activities
Adjustment for non cash effects
Depreciation		12000
Change in opreating assets & liabilities
Net decrease in currevt assets		21400
Net decrease in currevt liablilties		-5300
Net cash flow from opreating activities (a)		120700
Cash Flow from Financing activities
Dividend paid		-50500
Issue note payable		61200
Net cash Flow from Financing activities (b)		10700
Cash Flow from Investing activities
Building purchased		-279000
Sale of investment		350000
Net cash Flow from Investing activities (c)		71000
Net Channge in cash c=a+b+c		202400