During 2010, Rock Company\'s cash balance increased from $72,000 to $91,600. Roc

Question

During 2010, Rock Company's cash balance increased from $72,000 to $91,600. Rock's net cash flow from operating activities was $37,600 and its net cash flow from financing activities was $11,700. How much was Rock's net cash flow from investing activities?

Sparty Corporation has provided the following information for its most recent year of operation:   Revenues earned were $90,000, of which $6,000 were uncollectible at the end of the year.   Operating expenses incurred were $49,000, of which $6,000 were unpaid at the end of the year.   Dividends declared were $12,000, of which $3,000 were unpaid at the end of the year.   Income tax expense is 35% of pretax income.   How much net income was reported on Sparty's income statement?

Explanation / Answer

Hi,

Please find the answer as follows:

Part 1:

Answer is 26650 (Option D)

Part 2:

Ending Cash Balance = Opening Cash Balance + Cash flow from Operating Activities + Cash flow from Investing Activities + Cash flow from Financing Activities

91600 = 72000 + 37600 + Cash flow from Investing Activities + 11700

Cash Flow from Investing Activties = 91600 - 72000 - 37600 - 11700 = -29700

Answer is - Option B (A net cash flow of ($29,700))

Thanks.

Revenue 90000 Less Operating Expenses 49000 Profit Before Tax 41000 Less Taxes 14350 Net Income 26650

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.