Cash Flow Question 1. In Numar Company, Treasury Stock increased $25,000 from a
ID: 2425873 • Letter: C
Question
Cash Flow Question
1. In Numar Company, Treasury Stock increased $25,000 from a cash purchase, and Retained Earnings increased $75,000 as a result of net income of $120,000 and cash dividends paid of $45,000. Net cash used by financing activities is
25k
45k
120k
70k- Answer- Dont know how to get it though.
2.
During the year, Salaries and Wages Payable decreased by $6,000. If Salaries Expense amounted to $170,000 for the year, the cash paid to employees (including deductions from gross pay) is
Answer is 176,000, but dont know how, explain please.
3. The cost of goods sold during the year was $185,000. Merchandise inventory decreased by $6,000 during the year and accounts payable decreased by $3,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total
Answer is 182,000 but dont know how. Please explain.
Answer is 17,000. Please explain how to get that
During the year, Salaries and Wages Payable decreased by $6,000. If Salaries Expense amounted to $170,000 for the year, the cash paid to employees (including deductions from gross pay) is
Answer is 176,000, but dont know how, explain please.
3. The cost of goods sold during the year was $185,000. Merchandise inventory decreased by $6,000 during the year and accounts payable decreased by $3,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total
Answer is 182,000 but dont know how. Please explain.
Collins Pest Control Products has the following information available:
What is Collins’ free cash flow?
Answer is 17,000. Please explain how to get that
Explanation / Answer
1) Net cash used by financing activities=cash paid for treasury stock+cash dividends=25000+45000=70000
2) Cash paid to employees=170000+6000=176000.
Reduction in wages payable by 6000 means that we have paid last years wages of 6000 in current year.
3) cash payments for merchandise =185000-6000+3000=182000.
REduction in inventory means that we have utilised goods from opening stock and hence no payment was required to be made.
Decrease in accounts payable means that we have paid for last years purchases in current year.
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