Question

Exercise 1-9A Prepare a statement of cash flows (LO1-3) 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 $ 32,500 37,500 (42,500) (10,500) 11,500 (22,500) (2,500) 22,500 (4,500) 5 Assume the balance of cash at the beginning of the period is $3,500. Required: 1. Calculate the ending balance of cash. Ending balance 20,000

Answer 1

Answer:

Changes in Year = 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
Changes in Year = $32,500 + $37,500 - $42,500 - $10,500 + $11,500 - $22,500 - $2,500 + $22,500 - $4,500
Changes in Year = $21,500

Ending Cash Balance = Beginning Cash Balance + Changes in Year
Ending Cash Balance = $3,500 + $21,500
Ending Cash Balance = $25,000