Use the following data to determine the firm’s cash flow from investing activiti
ID: 2725585 • Letter: U
Question
Use the following data to determine the firm’s cash flow from investing activities, cash flow from financing activities, cash flow from operating activities and the firm’s net change in cash flows.
Payment of cash dividends
$80,000
Purchase a vehicle
33,000
Pay interest on debt
25,000
Sell old equipment
72,000
Repurchase stock
55,000
Cash payments to suppliers
95,000
Cash collected from customers
300,000
Payment of cash dividends
$80,000
Purchase a vehicle
33,000
Pay interest on debt
25,000
Sell old equipment
72,000
Repurchase stock
55,000
Cash payments to suppliers
95,000
Cash collected from customers
300,000
Explanation / Answer
CASH FLOW STATEMENT 1)Cash flows from Investing activities puruchase of vehicles ($33,000) sell of old equipment $72,000 $39,000 2) Cash flows from financing activities: payment of cash dividends ($80,000) pay interest on debt ($25,000) repurchase of stock ($55,000) ($160,000) 3) Cash flows from operting activities: cash collection from customers $300,000 cash payments to suppliers ($95,000) $205,000 net increase in cash (changes in cash flows) (1+2+3) $6,000
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