Sales Revenue 1500 shares issuance 175 Net Income 225 increase in long-term debt
ID: 2637473 • Letter: S
Question
Sales Revenue
1500
shares issuance
175
Net Income
225
increase in long-term debt
130
depreciation
28
dividend paid
5
decrease in accounts receivable
32
purchase of equipment
110
increase in inventory
45
Cash beginning of period
100
increase in accounts payable
38
Calculate cash at the end of the period
Sales Revenue
1500
shares issuance
175
Net Income
225
increase in long-term debt
130
depreciation
28
dividend paid
5
decrease in accounts receivable
32
purchase of equipment
110
increase in inventory
45
Cash beginning of period
100
increase in accounts payable
38
Explanation / Answer
Soln:
Cash and Cash Equivalents (Ending) = Cash and Cash Equivalents (Beginning) + Cash from Operations - Cash Flows from Investing Activities + Cash Flows from Financing Activities
Cash and Cash Equivalents (Beginning) = $ 100
Cash from Operations = Net income + depreciation + decrease in accounts receivable - increase in accounts payable - increase in inventory
Cash from Operations = 225 + 28 + 32 - 38 - 45
Cash from Operations = $ 202
Cash Flows from Investing Activities
purchase of equipment = $ 110
Cash Flows from Financing Activities
increase in long-term debt + share issuance + dividend paid
Cash Flows from Financing Activities = 130 + 175 + 5
Cash Flows from Financing Activities =310
Cash and Cash Equivalents (Ending) = Cash and Cash Equivalents (Beginning) + Cash from Operations - Cash Flows from Investing Activities + Cash Flows from Financing Activities
Cash and Cash Equivalents (Ending) = 100 + 202- 110+ 310
Cash and Cash Equivalents (Ending) = $ 502
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