The following table shows cash flow data for Rocket Transport.
Cash dividend | $ | 90,000 | |
Purchase of bus | $ | 53,000 | |
Interest paid on debt | $ | 35,000 | |
Sales of old equipment | $ | 82,000 | |
Repurchase of stock | $ | 75,000 | |
Cash payments to suppliers | $ | 105,000 | |
Cash collections from customers | $ | 400,000 | |
a. Find the net cash provided by or used in investing activities.
b. Find the net cash provided by or used in
financing activities. (Negative amount should be indicated
by a minus sign.)
c. Find the net increase or decrease in cash
for the year.
Cashflow from operating activities=-Interest paid on debt-Cash payment to suppliers+cash collected from customers.
Cash flow from operating activities=-$35,000-$105,000+$400,000=$260,000
a.Cashflow from Investing activities=-Purchase of bus+Sold of old equipment=-53,000+82000=$29,000
b.Cashflow from financing activities=-cash dividend-Repurchase of stock=-90,000-75,000=-$165,000
Note: '-' indicates cash outflow, '+' indicates cash inflow
c.Changes in cash= cash flow from operating activities+cash flow from investing activities+ cashflow from financing activities
Changes in cash=$260,000+$29,000-$165,000=$124,000
Increase in the cash=$124,000
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