Below are cash transactions for Goldman Incorporated, which provides consulting
ID: 2340030 • Letter: B
Question
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
a. Cash used for purchase of office supplies, $1,550.
b. Cash provided from consulting to customers, $42,100.
c. Cash used for purchase of mining equipment, $66,000.
d. Cash provided from long-term borrowing, $53,000.
e. Cash used for payment of employee salaries, $23,300.
f. Cash used for payment of office rent, $11,300.
g. Cash provided from sale of equipment purchased in c. above, $21,800.
h. Cash used to repay a portion of the long-term borrowing in d. above, $36,500.
i. Cash used to pay office utilities, $3,600.
j. Purchase of company vehicle, paying $9,300 cash and borrowing $14,300.
Required:
Calculate cash flows from financing activities. (List cash outflows as negative amounts.)
Explanation / Answer
Answer
d.
Cash provided from long-term borrowing
$ 53,000.00
h.
Cash used to repay a portion of the long-term borrowing
$ (36,500.00)
Total
Cash Flows from Financing Activities
$ 16,500.00
Serial no. of items not considered
Reason
a.
Part of Operating Activities section
b.
Part of Operating Activities section
c.
Part of Investing Activities section
e.
Part of Operating Activities section
f.
Part of Operating Activities section
g.
Part of Investing Activities section
i.
Part of Operating Activities section
j.
Part of Investing Activities section
d.
Cash provided from long-term borrowing
$ 53,000.00
h.
Cash used to repay a portion of the long-term borrowing
$ (36,500.00)
Total
Cash Flows from Financing Activities
$ 16,500.00
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