2. The following information reflects cash flow and other activities of Framer C

Question

2. The following information reflects cash flow and other activities of Framer Company for six months ended June 30:

Paid for equipment $45,000
Paid for income taxes 3,000
Paid for insurance 1,000
Paid for interest 900
Paid for utilities 790
Paid for advertising 560
Paid for owners 5,000
Paid for suppliers 28,000
Paid for employees 17,000
Depreciation expense 13,500
Received from customers 99,000
Received from issuing long-term 40,000
Received from sale of land 18,000

(a) What are the net cash flows from operating activities for the period?
(b) What are the net flows from investing activities for the period?
(c) What are net cash flows from financing activities for period?
(d) What was the net change in cash for the period?

Explanation / Answer

a. what are the net cash flows from operating activites for the period
rec'd from customers 99,000
paid for income taxes 3,000
Paid for insurance 1,000
paid for utilities 790
paid for advertising 560
paid to suppliers 28,000
paid to employees 17,000
Net cash generated from operating activities $48,650

b. what are that net cash flows from investing activities for the period
rec'd from sale of land 18,000
Paid for equipment $45,000
Net cash used in investing activities (27,000)

c. what are the net cash flow from financing activities for the period
rec'd from issuing long-term debt 40,000
paid to owners 5,000
paid for interest 900*
Net cash generated from financing activities 34,100

d. what was the net change in cash for the period
Decrease of $55,750

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