Question 3 options: 2. Calculate the amount of cash paid for rent reported by Be

Question

Question 3 options:

2. Calculate the amount of cash paid for rent reported by Betty DeRose, Inc. in its 2017 statement of cash flows.

3. Calculate the amount of cash paid to suppliers for purchases of inventory reported by Betty DeRose, Inc. in its 2017 statement of cash flows.

4. Calculate the net cash flow from investing activities for 2017.

5. Calculate the net cash flow from financing activities for 2017.

6. Calculate the amount of cash collections from customers reported by Betty DeRose, Inc.in its 2017 statement of cash flows

Explanation / Answer

Amount $ Ans 1 Income Tax paid= 18000+25000-30000 13000 Ans 1 Cash paid= Opening Balance+Expenses-Closing Balance Ans 2 Cash Paid for Rent=Rent Expense+Closing Prepaid-Opening Prepaid 29000+21000-19000 31000 Ans 2 Ans 3 Cash paid to suppliers=29000+328000-22000 335000 Ans 3 Cash paid= Accounts payable Opening Balance+Purchases-Closing Balance COGS=Opening Inventory+Purchases-Closing Inventory COGS-Opening Inventory+Closing Inventory=Purchases 293000-54000+89000 328000 Ans 4 Cash Flow from Invetsing activities Purchase of Land -35000 Purchase of Equipment= 98000-83000 -16000 Sale of Land 33000 Cash flow -18000 If there is purchase of land for $35000 land balance must be 66000+35000=101000 But the balance is $84000. That means there is sale of land of $17000 Gain on sale of land $16000, so cash=$17000+$16000=$33000 Ans 5 Net cash flow from Financing activities Issue of Cmmon Stock $10,000 Browwings from Note Pyable $12,000 Ans 5 Net cash flow from Financing activities $22,000

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