Question

Following are the transaction of TAR Inc., which provides consulting services related to mining of precious metals. Transaction Amount of Transaction Cash used for payment of employee salaries $345,000 125,000 C Cash provided from sale of equipment that had been used in operations Cash used for purchase of office supplies Cash used for purchase of office equipment Cash used to pay office utilities Cash used for payment of office rent 2,000 300,000 6,000 12,000 550,000 250,000 75,000 50,000 Cash provided from consulting customers Cash provided from long-term borrowing Cash used to pay the bank for a loan due this month Purchase of company vehicle paying 4/10 cash and borrowing the rest. 16. $. _Refer to transaction J, how much should be included in cash used from investing activities? 17. $ _Determine the net cash flows from operating activities (include "-" if needed) Determine the net cash flows from investing activities (include "-" if needed) 19. $ Determine the net cash flows from financing activities include "-" if needed) 20. $ _How much did cash change over the year?

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.

M N O AB Answer e Part 16) The correct answer is $ 20000 5 Explanation 5 Cash used from investing activities = cost of vehicle *4/10 = 50000 * 4/10 B = $ 20000 0 Part 17 1 The correct answer is $ 185000 3 Cash Flow From Operating activities = - cash paid for salaries - cash paid for office supplies - cash paid for utilities - cash paid for rent + cash from customers 4 = -345000-2000-6000-12000+550000 5 = $ 185000 7 Part 18) 8 The correct answer is - $ 195000 9 Cash Flow From investing activities = cash received from sale of equipment - cash paid for office equipment - cash paid for vehicle 0 = 125000 - 300000 - 20000 1 = -$ 195000

A B C D E F G H I Jк LM - Part 19) - The correct answer is $ 175000 cash Flow From Financing activities = cash received from borrowings - cash paid for loan repayment = 250000 - 75000 = $ 175000 - Part 20) The correct answer $ 165000 - Change incash = cash flow from operating activities + cash flow from investing activities + cash flow from financing activities = = 185000+(-195000) +175000 = $ 165000