Question

Using the following data, determine net change in cash.

Cash paid for dividends	($10,000)
Cash paid for income taxes	($15,000)
Cash paid for interest expense	($5,000)
Cash paid for salaries	($400,000)
Cash paid to loan funds to a top manager	($100,000)
Cash paid to purchase inventory	($50,000)
Cash paid to purchase investments	($120,000)
Cash paid to purchase machinery	($150,000)
Cash paid to purchase treasury stock	($25,000)
Cash paid to repay principal on a bank loan	($100,000)
Cash received for interest and dividends earned	$6,000
Cash received for loan repayment from manager	$100,000
Cash received from a bank loan	$100,000
Cash received from customers	$750,000
Cash received on the sale of a building	$250,000
Cash received on the sale of an investment	$10,000
Cash received on the sale of our company's stock	$120,000

		$155,000
		$505,000
		$361,000
		$285,000

Answer 1

Net change in cash = Sum of cash reeipts - Sum of cash payments

= (6000 + 100000 + 100000 + 750000 + 250000 + 10000 + 120000) - (10000 + 15000 + 5000 + 400000 + 100000 + 50000+ 120000 + 150000 + 25000 + 100000)

= 361000

Correct choice C