Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; and prepare...

Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; and prepare the Statement of Cash Flow for Cougar Corp. using the following data:

Cash at the beginning of the year: $600,000

Cash Receipts from:

__Bank (Interest on CD) $3,000

__Customers Sales $875,000

__Interest $30,000

__Dividends $3,500

Cash payments for:

__Dividends $2,000

__Raw Materials $ 3,000

__Wages Expense $4,000

__Land $10,000

__Interest $4,000

Expert Solution

Cash flow statement of Cougar Corp along with classification of given Activities :
Particulars	Amount (in $)
Cash flows from Operating Activities :
Customer Sales	8,75,000
Raw Materials	-3,000
Wages Expenses	-4,000
	8,68,000	A
Cash flows from Financing Activities :
Interest on CD	3,000
Interest	30,000
Dividends	-2,000
Land	-10,000
	21,000	B
Cash flows from Investment Activities :
Dividends	3,500
	3,500	C
Total Cash flows = A+B+C	8,92,500	D
Cash at the beginning of the year	6,00,000	E
Cash at the end of the year = D+E	14,92,500

ekkarill92 answered 1 year ago

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