Question

Ariel Corporation uses the direct method to prepare its statement of cash flows. Data related to cash activities for last year appear next (Click the icon to view the data.) Answer the following questions Data Table Questions Paid for equipment $ 16,000 Paid for interest $ 4,700 Paid to suppliers 35,000 Paid for utilities. . $ 13,000 1. What was the net cash flow from operating activities for the year? 9,700 Paid dividends Paid for insurance $ 7,500 2. What was the net cash flow from investing activities for the year? Depreciation expense 3,900 Received from customers $ 58,000 3. What was the net cash flow from financing activities for the year? Paid for taxes. . Paid for advertising 7,100 $ 5,200 4. What was the net change in cash for the year? Received from sale of land 19,000 Received from issuing long-term note payable $ 23,000 5. If the beginning balance of cash for the year was $342,000, what was the balance of cash at the end of the year? Paid to employees.. Received from sale of plant assets $ 6,700 10,000 Print Done Print Done

Answer 1

1) Net Cash flow from operating activities = -$19600

2) Net Cash flow from investing activities = $9700

3) Net Cash flow from financing activities = $23000

4) Net change in cash = cash from operating + cash from investing + cash from financing = -19600+9700+23000 = $13100

5) Ending cash balance = beginning cash balance + net change in cash = 342000+13100 = $355100

Notes

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Cash received from customers	$    58,000
Cash paid for interest	$     -4,700
Cash paid for utilities	$ -13,000
Cash paid for taxes	$     -5,200
Cash paid to employees	$ -10,000
Cash paid to suppliers	$ -35,000
Cash paid for insurance	$     -9,700
Cash paid for advertising	$     -7,100
Cash Flows from Operating Activities:	$ -19,600
Cash paid for equipment	$ -16,000
Cash received from sale of land	$    19,000
Cash received from sale of plant assets	$      6,700
Cash Flows from Investing Activities:	$      9,700
Cash paid for dividends	$     -7,500
Cash received from issue of notes	$    23,000
Cash Flows from Financing Activities:	$    23,000