Question

Tiger Trade has the following cash transactions for the period. Amounts $36,500 41,500 (46,500) 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 12,300 (23,300) (3,300) 26,500 (5,300) Assume the balance of cash at the beginning of the period is $4,300. Required: 1. Calculate the ending balance of cash. Ending balance 2. Prepare a statement of cash flows. (Cash outflows should be indicated by a minus sign.) TIGER TRADE

Answer 1

1) Ending balance of cash = 31400

2)

Statement of Cash Flows (Direct Method) Cash flow from Operating Activities: Cash Inflows: Cash Received from Sale of products to customers Cash Received from Sale of services to customers 36,500 26,500 Cash Outflows: Cash paid to merchandise suppliers Cash paid to workers Cash paid for advertisement -11,300 -23,300 -3,300 Net cash flow from operating activities 25,100 Cash flow from Investing Activities: Cash received from the sale of an unused warehouse Cash paid to purchase factory equipment 12,300 -46,500 Net cash flow from investing activities -34,200 Cash flow from Financing Activities: Cash paid for dividends to stockholders Cash received from the bank for long-term loan -5,300 41,500 Net cash flow from financing activities 36,200 Net Increase in Cash Cash, Beginning Balance Cash, Ending Balance 27,100 4,300 31,400