Question

Tiger Trade has the following cash transactions for the period. 10.5 points 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 $ 30,500 35,500 (40,500) (10,100) 11,100 (22,100) (2,100) 20,500 (4,100) Skipped eBook References Assume the balance of cash at the beginning of the period is $3,100. Required: 1. Calculate the ending balance of cash. Ending balance

Answer 1

Requirement 1:

Ending balance of cash

$21,800

Calculations:

Beginning cash balance	$3,100
Cash received from sale of products to customers	$30,500
Cash received from the bank for long-term loan	$35,500
Cash paid to purchase factory equipment	($40,500)
Cash paid to merchandise suppliers	($10,100)
Cash received from the sale of an unused warehouse	$11,100
Cash paid to workers	($22,100)
Cash paid for advertising	($2,100)
Cash received for sale of services to customers	$20,500
Cash paid for dividends to stockholders	($4,100)
Ending cash balance	$21,800

Requirement 2:

TIGER TRADE
Statement of Cash Flows
Cash flows from Operating Activities:
Cash received from sale of products to customers	$30,500
Cash received for sale of services to customers	$20,500
Cash paid to merchandise suppliers	($10,100)
Cash paid to workers	($22,100)
Cash paid for advertising	($2,100)
Net Cash flows from Operating Activities (i)		$16,700
Cash flows from Investing Activities:
Cash paid to purchase factory equipment	($40,500)
Cash received from the sale of an unused warehouse	$11,100
Net Cash flows from Investing Activities (ii)		($29,400)
Cash flows from Financing Activities:
Cash received from the bank for long-term loan	$35,500
Cash paid for dividends to stockholders	($4,100)
Net Cash flows from financing Activities (iii)		$31,400
Increase(Decrease) in cash (i+ii+iii)		$18,700
Beginning cash balance		$3,100
Ending cash balance		$21,800