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(1) Use this information to prepare a complete statement of cash flows for year

ID: 2525347 • Letter: #

Question

(1) Use this information to prepare a complete statement of cash flows for year 2013. direct method. Balance, Dec. 31, 2012........... 333 Payments for note payable............. 386 Payments for dividends ........... 500 Payments for treasury stock ..........218 Receipts from customers........... 5,000 Receipts from dividends .............. 208 Receipts from land sale ............. 220 Receipts from machinery sale it. 710 Receipts from issuing stock ........ 1,540 Receipts from borrowing ............ 3,600 Payments for merchandise 2,590 Payments for wages.com..... 550 Payments for rent.............. ... 320 Payments for interest ........... . 218 Payments for taxes................ 450 Payments for machinery.c............. Payments for long-term investments ..ic.1,260 FITNE THOMAS CORPORATION Statement of Cash Flows For Year Ended December 31, 2013 Cash flows from operating activities Net cash provided by operating activities............. Cash flows from investing activities Net cash used in investing activities ... Cash flows from financing activities Net cash provided by financing activities ..... Net Increase (decrease) in cash ....... Beginning balance of cash ......... .. Ending balance of cash........... A. What is the ending cash balance at December 31, 2013? B. Which section - Operating, Investing, or Financing shows the largest cash inflow? C. Which item is the largest cash outflow for Investing Activities? D. Does the company have a net cash inflow or outflow for Operating activities?

Explanation / Answer

Answers

Cash flows from Operating Activities

Receipt from customers

$           5,000.00

payment for merchandise

$        (2,590.00)

payment for wages

$            (550.00)

payment for rent

$            (320.00)

payment for taxes

$            (450.00)

Net Cash provided by operating activities

$             1,090.00

Cash flows from Investing activities

Receipt from dividends

$              208.00

Receipt from Land Sale

$              220.00

Receipt from Machinery sale

$              710.00

Payment for machinery

$        (2,236.00)

payment for long term investments

$        (1,260.00)

Net Cash used in Investing activities

$          (2,358.00)

Cash flows from financing activities

payments for note payable

$            (386.00)

payments for dividends

$            (500.00)

payment for treasury stock

$            (218.00)

receipt from Issuing stock

$           1,540.00

Receipt from borrowings

$           3,600.00

Payment for Interest

$            (218.00)

Net cash provided by financing activities

$             3,818.00

Net Increase (Decrease) in cash

$             2,550.00

Beginning balance of cash

$                333.00

Ending balance of cash

$             2,883.00

Cash flows from Operating Activities

Receipt from customers

$           5,000.00

payment for merchandise

$        (2,590.00)

payment for wages

$            (550.00)

payment for rent

$            (320.00)

payment for taxes

$            (450.00)

Net Cash provided by operating activities

$             1,090.00

Cash flows from Investing activities

Receipt from dividends

$              208.00

Receipt from Land Sale

$              220.00

Receipt from Machinery sale

$              710.00

Payment for machinery

$        (2,236.00)

payment for long term investments

$        (1,260.00)

Net Cash used in Investing activities

$          (2,358.00)

Cash flows from financing activities

payments for note payable

$            (386.00)

payments for dividends

$            (500.00)

payment for treasury stock

$            (218.00)

receipt from Issuing stock

$           1,540.00

Receipt from borrowings

$           3,600.00

Payment for Interest

$            (218.00)

Net cash provided by financing activities

$             3,818.00

Net Increase (Decrease) in cash

$             2,550.00

Beginning balance of cash

$                333.00

Ending balance of cash

$             2,883.00