Question

In order to prepare the statement of cash flows for Rag Dolls Corporation for 2010, the accountant has compiled the following data regarding cash flows:

                  Cash paid to acquire marketable securities.......................................... $  370,000

                  Proceeds from sale of marketable securities............................................. 17,500

                  Proceeds from issuance of capital stock................................................... 280,000

                  Proceeds from issuance of bonds payable.................................................. 55,000

                  Payments to settle short-term debt............................................................ 32,500

                  Interest and dividends received................................................................... 10,000

                  Cash received from customers.............................................................................. ?     

                  Dividends paid............................................................................................ 130,000

                  Cash paid to suppliers and employees.................................................... 1,030,000

                  Interest paid................................................................................................. 25,000

                  Income taxes paid........................................................................................ 70,000

                  Cash and cash equivalents, January 1, 2010................................................ 43,000

                  Cash and cash equivalents, December 31, 2010.......................................... 58,000

                  Using the above information, indicate the best answer for each question in the space provided.

                 3       Rag Dolls’ cash flow from operating activitiesduring 2010 is:

                          a       $45,000 net cash provided by operating activities.

                          b       $1,155,000 net cash used by operating activities.

                          c       $240,000 net cash provided by operating activities.

                          d       $195,000 net cash provided by operating activities.

                 4       In the 2010 statement of cash flows for Rag Dolls Corporation, the amount of cashreceived from customersis:

                          a       $1,310,000.

                          b       $1,103,000.

                          c       $1,233,000.

                          d       $1,293,000.

I need step by step solution to these two questions.

Answer 1