Question

Tiger Trade has the following cash transactions for the period.

Answer 1

Answer:

                                Tiger Trade

                        Cash Flow Statement

Cash flows from operating activities:

• Cash received from sale of products to customers $35,000
• Cash received for sale of services to customers $25,000
• Cash paid to merchandise suppliers ($11,000)
• Cash paid to workers ($23,000)
• Cash paid for advertisement ($3,000)

Total cash flow from operating activities $23,000

Cash flows from investing activities:

• Cash received from the bank for long-term loan $40,000
• Cash paid to purchase factory equipment ($45,000)
• Cash received from the sale of an unused warehouse $12,000

Total cash flow from investing activities $7,000

Cash flows from financing activities:

• Cash paid for dividends to stockholders ($5,000)

Total cash flow from financing activities ($5,000)

Net cash increase                                                               $25,000

Cash balance at the beginning of the period                     $4,000

Cash balance at the end of the period                            $29,000