Question

Use the following to answer questions 12-15 Transaction Cash involved? (Yes or No) Type of CASH FLOW Operating, Investing, Financing, or None Use the first letter ,,F,N) 12. Paid dividends to stockholders 13. 14. Paid interest on the loan Provided services to customers on account Paid for equipment purchased for the company 15. Use the following to answer questions 16-20 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 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 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. $345,000 125,000 2.000 300,000 6,000 12,000 550,000 250,000 75,000 50,000 16. $ Refer to transaction ), how much should be included in cash used from investing activities? 17. S Determine the net cash flows from operating activities include "-"if needed) Determine the net cash flows from investing activities (include if needed) Determine the net cash flows from financing activities include "-"if needed) How much did cash change over the year?

Answer 1

12,	Paid dividends to stockholders	Yes	I	Investing Activities
13	Paid interest on the loan	Yes	F	Financing activities	It may be from Operating Activity because Interest is the cost of loans borrowed from financial institutions.
14,	Provided services to customers on account	No	N
15,	Paid for equipment purchased for the company	Yes	I	Investing Activities

16. 20000 = 50000/10*4

17. Operating Activities -185000

18. Investing Activities -195000

19. Financial Activities 165000

20. Change in cash balance 165000

Cash Flow Statement
	Cash at Beginning of Year
Operations
Cash receipts from
	Customers	5,50,000
Cash paid for
	Purchase of Supplies	-2,000
	Salaries expenses	-3,45,000
	Paid for Office Utilities	-6,000
	Rent Paid	-12,000
Net Cash Flow from Operations		1,85,000
Investing Activities
Cash receipts from
	Sale of property and equipment	1,25,000
Cash paid for
	Purchase of Office equipment	-3,00,000
	Purchase of Company Vechicle	-20,000
Net Cash Flow from Investing Activities		-1,95,000
Financing Activities
Cash receipts from
	Borrowing	2,50,000
Cash paid for
	Repayment of loans	-75,000
Net Cash Flow from Financing Activities		1,75,000
Net Increase in Cash		1,65,000