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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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