Question

The following table shows cash flow data for Rocket Transport.

Cash dividend	$	92,000
Purchase of bus	$	57,000
Interest paid on debt	$	37,000
Sales of old equipment	$	84,000
Repurchase of stock	$	79,000
Cash payments to suppliers	$	107,000
Cash collections from customers	$	420,000

a. Find the net cash provided by or used in investing activities.

b. Find the net cash provided by or used in financing activities. (Negative amount should be indicated by a minus sign.)

c. Find the net increase or decrease in cash for the year.

Answer 1

Statement of cash flows (Partial)
Particulars	Amount ($)	Amount ($)
Cash flow from operating activities
Cash collections from customers	4,20,000
Less: Cash payments to suppliers	-1,07,000
Less: Interest paid on debt	-37,000
Net cash provided by operating activities		2,76,000
Cash flow from investing activities
Sales of old equipment	84,000
Less: Purchase of bus	-57,000
Net cash provided by investing activities		27,000
Cash flow from financing activities
Less: Cash dividend	-92,000
Less: Repurchase of stock	-79,000
Net cash used in financing activities		-1,71,000
Net increase in cash for the year.		1,32,000

(a)-The net cash provided by investing activities = $27,000

(b)-The net cash used in financing activities = -171,000 (Negative)

(c)-The net increase in cash for the year = $132,000