Question

Problem 19-15 The following is cash flow data for Rocket Transport: Cash dividend Purchase of bus Interest paid on debt Sales of old equipment Repurchase of stock Cash payments to suppliers Cash collections from customers $ 81,000 $ 35,000 $ 25,000 $ 70,500 $ 55,500 $ 95,000 $310,000 a. Find the net cash provided by or used in investing activities. (Input the amount as positive value.) Net cash investing activities b. Find the net cash provided by or used in financing activities. (Input the amount as positive value.) Net cash financing activities

Answer 1

Operating Activities Cash payment to suppliers Cash collections from customers -95,000 3,10,000 2,15,000 Net cash provided by Operating activities is $215,000. Investing Activities Purchase of Bus Sales of old equipment -35,000 70,500 35,500 Net cash provided by Investing activities is $35,500. Financing Activities Cash Dividend Interest Paid on debt Repurchase of stock (Assuming it is a common or preferred stock) -81,000 -25,000 -55,500 -1,61,500 Net cash used in Financing activities is $161,500 Net Increase in Cash 89,000 a. Net cash provided by Investing activities is $35,500. b. Net cash used in Financing activities is $161,500 c. Net Increase in Cash is $89,000