Question

Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of products to customers Cash received from the bank for long-term loan Cash paid to purchase factory equipment Cash paid to merchandise suppliers Cash received from the sale of an unused warehouse Cash paid to workers Cash paid for advertisement Cash received for sale of services to customers Cash paid for dividends to stockholders Amounts $ 35,500 40,500 (45,500) (11,100) 12,100 (23,100) (3,100) 25,500 (5,100) Assume the balance of cash at the beginning of the period is $4,100. Required: 1. Calculate the ending balance of cash. Ending balance

Answer 1

1.) Ending cash balance = Beginning balance + Changes in year

= 4,100 + (35,500 + 40,500 - 45,500 - 11,100 + 12,100 - 23,100 - 3,100 + 25,500 - 5,100

= 4,100 + 25,700

= $29,800

2.) Statement of cash flows :-

Cash flows from operating activities
Cash Inflows:
Sale of products	35,500
Sale of services	25,500
	61,000
Cash outflows:
Merchandise supplies	(11,100)
Workers	(23,100)
Advertisement	(3,100)
	(37,300)
Net cash flows from operating activities		23,700
Cash flow from investing activities
Purchase of factory equipment	(45,500)
Sale of unused warehouse	12,100
Net cash flows from investing activities		(33,400)
Cash flow from financing activities
Long term bank loan received	40,500
Dividend paid	(5,100)
Net cash flows from financing activities		35,400
Total cash flows
Cash balance at the beginning of year		4,100
Cash balance at the end of year		29,800