Cash received from lenders $20,000 Cash received from customers 60,000 Cash paid
ID: 2363983 • Letter: C
Question
Cash received from lenders $20,000
Cash received from customers 60,000
Cash paid for new equipment 35,000
Cash dividends paid 8,000
Cash paid to suppliers 18,000
Cash balance 1/1/10 12,000
Complete the statment of cash of flows for Damon Corporation.
Damon Corporation
Statement of Cash Flows
For the Year Ended December 21,2010
____________________________________________________________________________________________
Cash flows from operating activities:
Cah received from customers $60,000
Cash paid to suppliers -18,000
Net Cash provided by operating activities $42,000
Cash flows from investing activities:
___________________________ $__________
Net cash used inveting activities $________
Cash flows from financing activities:
____________________________ $____________
Cash dividens paid $___________
Net cash ______________ by financing $________
activities
Net__________ in cash $_________
Cash at begining of period $________
Cash at the end of period $________
Suppose you are ine of Damon's creditors. Refering to the statement of cash flows, does Damon have the ability to repay its creditors.
____________________
Explanation / Answer
Investing Activities: Cash paid for new equipment Any purchase or sale of a long-term asset qualifies as an investing activity. Financing Activities: Cash received from lenders Cash dividends paid Cash received through borrowing or the issuance of stock qualifies as a financing activity. Dividends paid is also a financing activity, however, dividends received is not.
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