Asked by Quentin Washington on Jun 19, 2024
Verified
The following information is available for Redcands Company: Receipts from customers $215,000 Dividends from stock investments 3,000 Proceeds from sale of equipment 18,000 Proceeds from issuance of stock 90,000 Payments for inventory 100,000 Payments for operating expenses 78,000 Interest paid 6,000 Taxes paid 4,000 Dividends paid 20,000\begin{array}{lr}\text { Receipts from customers } & \$ 215,000 \\\text { Dividends from stock investments } & 3,000 \\\text { Proceeds from sale of equipment } & 18,000 \\\text { Proceeds from issuance of stock } & 90,000 \\\text { Payments for inventory } & 100,000 \\\text { Payments for operating expenses } & 78,000 \\\text { Interest paid } & 6,000 \\\text { Taxes paid } & 4,000 \\\text { Dividends paid } & 20,000\end{array} Receipts from customers Dividends from stock investments Proceeds from sale of equipment Proceeds from issuance of stock Payments for inventory Payments for operating expenses Interest paid Taxes paid Dividends paid $215,0003,00018,00090,000100,00078,0006,0004,00020,000 Instructions
Based on the preceding information compute the net cash provided by operating activities.
Investing Activities
Financial transactions related to the acquisition or sale of long-term assets and other investments not classified as cash equivalents.
Operating Expenses
Costs necessary for a company to conduct its day-to-day business activities, excluding direct production costs.
Stock Investments
Investments in the capital stock of other corporations.
- Adopt direct and indirect mechanisms to gauge net cash derived from operating activities.
- Interpret the significance of balance sheet account changes on cash flow outcomes.
Verified Answer
SA
Salma ArmentaJun 22, 2024
Final Answer :
Receipts from customers $215,000 Dividends from stock investments 3,000218,000 Payments for goods $100,000 Payments for operating expenses 78,000 lnterest paid 6,000 Taxes paid 4,000188,000 Net cash provided by operating activities $30,000\begin{array}{lrr}\text { Receipts from customers } & \$ 215,000 \\\text { Dividends from stock investments } & 3,000 \\&218,000\\\\\text { Payments for goods } & \$ 100,000 & \\\text { Payments for operating expenses } & 78,000 & \\\text { lnterest paid } & 6,000 & \\\text { Taxes paid } & 4,000 & 188,000 \\\text { Net cash provided by operating activities } & & \$ 30,000\end{array} Receipts from customers Dividends from stock investments Payments for goods Payments for operating expenses lnterest paid Taxes paid Net cash provided by operating activities $215,0003,000218,000$100,00078,0006,0004,000188,000$30,000
Learning Objectives
- Adopt direct and indirect mechanisms to gauge net cash derived from operating activities.
- Interpret the significance of balance sheet account changes on cash flow outcomes.
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