Solution:
a)Calculation of company’s cash flow from operating activities for the year:
Statement showing Cash from operating activities:
Amount | |
Net Income | $9,100 |
Add:Depreciation | $1200 |
Add:Change in working capital | $0 |
Cash flow from operating activities | $10,300 |
b)Cash flow from investing activities for the year:
=Sale of land+sale of machinery
=$7,500+$3,700
=$11,200
c)Cash flow from financing activities for the year:
=Bank loan received-Dividend paid
=$2,400-$4,900
=-$2500
d)Calculation of cash balance at year end:
Amount | |
Opening cash balance(bank balance) | $3,400 |
Add:cash flow from operating activities | $10,300 |
Add:Cash flow from investing activities | $11,200 |
Less:Cash flow from Financing activities | $2,500 |
Cash balance at the year end | $22,400 |
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