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Question 4 Answer saved Marked out of 5.00 P Flag question Preparing the Cash Flow from Operating Activities Section Sarasota Corp. reported net income of $40,000, which included depreciation expense of $5,200. It also reported an increase in accounts receivable and salaries payable of $2,800 and $1,600, respectively. Further, it reported a decrease in inventory of $5,600 and a decrease in accounts payable of $3,840. Calculate its net cash provided by operating activities. $ O eBook Pri Question 5 Answer saved Marked out of 5.00 P Flag question Preparing the Cash Flow from Investing Activities Section Gomez Corp. reported the following items for the year ended December 31, 2020. Item Dec 31, 2020 Sold an investment in debt securities (long-term) for cash $ 75,000 Sold equipment for cash, previously used in operations 62,500 Paid cash for dividends 25,000 Issued common stock for cash 250,000 Retired a 10-year bond payable by repaying the face value at maturity 200,000 Sold investment in equity securities (held for one-year) 27,500 Borrowed cash by signing a nine-month note payable 37,500 Extended a loan to a customer for a building expansion 20,000 Use a negative sign with your answer to indicate a cash outflow, if applicable. Calculate net cash from investing activities for the year ended December 31, 2020. $ 0

Answer 1

in $ in $ 40,000 Answer to Question 4 SARASOTA CORP. Cash Flow Statement (Extract) Particulars (1). Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Increase in Accounts Receivable Increase in Salaries Payable Decrease in Inventory Decrease in Accounts Payable Sub-Total Net Cash provided by Operation Activities () 5,200 -2,800 1,600 5,600 -3,840 5,760 45,760 in $ in $ Answer to Question 5 Gomex Corp. Cash Flow Statement (Extract) For the Year Ending Dec 31, 2020 Particulars (11). Investing Activities Sold an investment in debt securities Sold an equipment Sold an investment in equity securities Less- Extended a loan to customer Net Cash from Investing Activities (11) 75,000 62,500 27,500 -20,000 145,000 Note- The following items shall form part of cash flow from financing activities 1. Paid cash for dividends $ (25,000) 2. Issued common stock for cash $ 250,000 3. Retired a 10 year bond payable $ (200,000) 4. Borrowed cash by signing nine month note payable $ 37,500