Question

Whispering Beverage Company reported the following items in the most recent year. Net income Dividends pald Increase in accounts receivable Increase in accounts payable Purchase of equipment (capital expenditure) Depreciation expense Issue of notes payable $41,700 5,060 10,640 7,220 8,300 4,220 21,440 Compute net cash provided by operating activities, the net change in cash during the year. (Show amounts that decrease cash flow with either a sig -15,000 or in parenthesis e.g. (15,000).) WHISPERING BEVERAGE COMPANY Statement of Cash Flows

Answer 1

Compute net cash provided by operating activities, the net change in cash during the year. WHISPERING BEVERAGE COMPANY Statement of Cash Flows Cash Flows from Operating Activities Net Income Depreciation Expense $4,220 Increase in Accounts Payable 7,220 Increase in Accounts Receivable -10,640 $41,700 800 42,500 -8,300 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment Cash Flows from Financing Activities Issue Notes Payable Dividends Net Cash Provided by Financing Activities Net Increase in Cash 21,440 -5,060 16,380 $50,580 Net increase in cash = ($42,500 – $8,300 + $ 16,380) = $50,580