a. Collections from customers are $16,000 more than sales. b. Dividend revenue,

Question

a. Collections from customers are $16,000 more than sales. b. Dividend revenue, interest expense, and income tax expense equal their cash amounts. Payments to suppliers are the sum of cost of goods sold plus advertising expense. c. d. Payments to employees are $1,000 more than salaries expense. e. Cash payment for the acquisition of plant assets is $104,000. f. Cash receipts from sale of land total $20,000. g. Cash receipts from issuance of common stock total $37,000. h. Payment of long-term notes payable is $18,000. i. Payment of dividends is $12,000. Cash balance at June 30, 2017, was $26,000; at June 30, 2018, it was $28,000.

Explanation / Answer

Cash flow from operating activities Receipts Collection from customer 245000 Dividend revenue 10500 Total cash receipts 255500 Payments Interest expense 3000 Income tax expense 8000 Payment to supplier 118500 Payment to employees 47000 Total cash payments 176500 Cash flow from operating activities 79000 Cash flow from Investing activities Land sold 20000 Purchase of plant assets -104000 Cash used in investing activities -84000 Cash flow from Financing activities Common stock 37000 Long term notes payable -18000 Cash dividend -12000 Cash used in financing activities 7000 Net Cash and cash equivalent 2000 Add Beginning cash and cash equivalent 26000 Ending cash and cash equivalent 28000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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