Question

Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals. a. Cash used for purchase of office supplies, $1,450. b. Cash provided from consulting to customers, $41,100. c. Cash used for purchase of mining equipment, $64,000. d. Cash provided from long-term borrowing, $51,000. e. Cash used for payment of employee salaries, $23,100. f. Cash used for payment of office rent, $11,100. g. Cash provided from sale of equipment purchased in c. above. $21,600. h. Cash used to repay a portion of the long-term borrowing in d. above, $35,500. i. Cash used to pay office utilities, $3,400. J. Purchase of company vehicle, paying $9,100 cash. Required: Calculate cash flows from financing activities. (List cash outflows as negative amounts.) Answer is complete but not entirely correct. Cash used for purchase of office supplies Cash provided from consulting to customers. Cash used for purchase of mining equipment Cash provided from long-term borrowing. Cash used for payment of employee salaries Cash used for payment of office rent. Cash provided from sale of equipment. Cash used to repay a portion of the long-term borrowing. Cash used to pay office utilities. Purchase of company vehicle. Cash flows from financing activities ®®®®®®® (1.450) 41,100 (64,000) 51,000 (23,100) (11,100) 21,600 (35,500) (3,400) (9,100) (33,950) $ < Prev 6 of 10 !! Next >

Answer 1

Financing activities includes only equity, debt, dividends and any capital related transactions.

Cash flow from financing activities:

Cash provided from long term borrowings	$51,000
cash used to repay a portion of long term borrowing	(35,500)
Net cash flow from financing activities	$15,500