What is the net cash used in investing activities for 2018? What is the net cash

Question

What is the net cash used in investing activities for 2018?

What is the net cash provided by financing activities in 2018?

What is the net increase in cash and marketable securities for 2018?

A firm reports the following key financial figures for the last fiscal year: Income Statement Data Net Income Depreciation Dividends (cash) 2018 $800,000.00 $100,000.00 $125,000.00 Balance Sheet Data 2018 2017 $350,000.00 $325,000.00 $350,000.00 $325,000.00 $350,000.00 $325,000.00 Gross Plant, Property, and Equipment $1,500,000.00 $1,250,000.00 $100,000.00 $100,000.00 $2,000,000.00 $1,800,000.00 500,000.00 500,000.00 Accounts Receivable Inventory Accounts Payable Notes Payable Long Term Debt

Explanation / Answer

Net cash used in investing activities for 2018.

Net cash used in investing activities = Purchase of Plant, Property and Equipments

= -$250,000 [1,500,000 – 1,250,000]

Net cash provided by financing activities in 2018

Net cash provided by financing activities = Proceeds from Long term Debt – Dividend paid during the year

= $200,000 – 125,000

= $75,000

Net increase in cash and marketable securities for 2018

Net increase in cash and marketable securities for 2018 = Net cash provided by operating activities - Net cash used in investing activities + Net cash provided by financing activities

Net cash provided by operating activities

= Net Income + Depreciation – Increase in Accounts Receivables - Increase in Inventories + Increase in Accounts Payables

= $800,000 + 100,000 – 25,000 – 25,000 + 25,000

= $875,000

Therefore, Net increase in cash and marketable securities for 2018

= $875,000 – 250,000 + 75,000

= $700,000

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