5) The date below relate to Blues Traveler Company. The balance of cash at Janua

Question

5)

The date below relate to Blues Traveler Company. The balance of cash at January 1, 20xx is $54,000. Answer excercises.

Cash paid for inventory $36,000 Cash received from issuing stock to the owners $122,000 Cash paid to buy an office building $40,000 Cash received from the bank on a 10-year loan $63,000 Cash paid to the owners as dividends $5,000 Cash received from selling on old pick-up truck $6,000 Cash paid for utilities $3,000 Cash paid for federal income taxes $4,000 Cash paid to employees $101,000 Cash paid for insurance $7,000 Cash paid for office supplies $2,000 Cash paid for interest payments $6,500 Cash collected from customers $274,000 Cash collected from selling stocks held as a long-term investment $11,000 17.

a)The net cash from operating activities is: a. $120,000 c. $114,500 b. $137,500 d. None of the above

b). The net cash from investing activities is: a. -$23,000 c. -$53,000 b. -$56,500 d. None of the above

c). The net cash from financing activities is: a. $170,000 c. $140,000 b. $135,500 d. None of the above

d). The December 31, 20xx balance of cash is: a. $325,500 c. $197,500 b. $267,500 d. None of the above

e). Curly, Larry & Moe Company had net income of $130,000 for the current year. The income statement reveals depreciation expenses of $8,000; a loss of $12,000 and gains of $6,000. Comparative balance sheets reveals that certain CA increased $10,000 and other CA accounts decreased $14,000; some of the CL went up $14,000 and others went down $21,000.

f)Determine the net cash flows from operating activities using the indirect method. a. $201,000 b. $155,000 c. $187,000 d. None of the above.

g). Assume you are analyzing two companies in the same industry and you want to know which company uses its assets more effectively to generate revenues. You should use which ratio: a. Net Income ratio c. Debt to asset ratio b. Current ratio d. Asset turnover ratio

Explanation / Answer

Solution:-

a) c. $114,500

Explanation:-

b) a. $23,000

Explanation:-

c) d. None of the above

Explanation:-

d) a. $325,500

Note:- As per chegg guidelines if more than four sub part is posted than we liable to answer only first four sub part.

Please Rate or comment if you have any doubt regarding this solution.

Cash from operating activities Cash collected from customers $274,000 Less Cash paid for inventory $36,000 Less Cash paid for utilities $3,000 Less Cash paid for federal income taxes $4,000 Less Cash paid to employees $101,000 Less Cash paid for insurance $7,000 Less Cash paid for office supplies $2,000 Less Cash paid for interest payments $6,500 Cash from operating activities $114,500

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