Solved

Given the Following Data, Answer the Questions That Follow Additional Information

Question 158

Essay

Given the following data, answer the questions that follow.
Income Statement
For the Year Ended 12/31/Year 2 Additional Information:  Net Sales $1,500,000 Cost of goods sold (800,000) Cash operating expenses (400,000) Depreciation and amortization expense (100,000) Gain on sale of equipment 60,000 Net income $260,000\begin{array} { | l | l | } \hline \text { Net Sales } & \$ 1,500,000 \\\hline \text { Cost of goods sold } & ( 800,000 ) \\\hline \text { Cash operating expenses } & ( 400,000 ) \\\hline \text { Depreciation and amortization expense } & ( 100,000 ) \\\hline \text { Gain on sale of equipment } & 60,000 \\\hline \text { Net income } & \$ 260,000 \\\hline\end{array}
Additional Information:
 1. Increase in accounts receiable during Year 2$40,000 2. Decrease in inventory during Year 2 30,000 3. Inc rease in accounts payable 44,000 4. Sale of old equipment tor cash 130,000 5. Dividends declared - $90,000; Dw idends paid 80,000 6. New building acquired by issuing common shares 84,000 7. Sold bonds for cash - proceeds of 150,000\begin{array} { | l | l | } \hline \text { 1. Increase in accounts receiable during Year } 2 & \$ 40,000 \\\hline \text { 2. Decrease in inventory during Year 2 } & 30,000 \\\hline \text { 3. Inc rease in accounts payable } & 44,000 \\\hline \text { 4. Sale of old equipment tor cash } & 130,000 \\\hline \text { 5. Dividends declared - } \$ 90,000 \text {; Dw idends paid } & 80,000 \\\hline \text { 6. New building acquired by issuing common shares } & 84,000 \\\hline \text { 7. Sold bonds for cash - proceeds of } & 150,000 \\\hline\end{array}
1) What was cash from customers during year 2?
2) What was cash paid to suppliers during year 2?
3) What was net cash inflow from operating activities during year 2?
4) What was net cash inflow (outflow) from investing activities during year 2?
5) What was net cash inflow (outflow) from financing activities during year 2?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents