Question

INDTAP Search this cou ty: Statement of cash flows Video Excel Online Structured Activity Statement of cash flows You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100.000 in the bank at the end of the prior year and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $440,000, however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of 51 million at a 7 interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X2 Open spreadsheet What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5.000.000. Round your answer to the nearest dollar. if necessary. Check My Work

Answer 1

Therefore, the ending cash balance is $ 3,40,000

Anwer custo How Statement Cash Flow Statement shows the inflows and outflow; of the cash during the year. Inflows and outflows are sjuided in the three activities viz. operating inverting and financing activities. It is the good measure to know the idle finis I where the firm has inveito Living the periodi A liten navegurjogbon Industries Statement of Guh Flows as on Debe of five Aml-($) Jambo Particulars Gesta flows from Operating Activities Net Income for the year ti Degreclyton Net cash flows from Opewaring Adultes 5000 000 ! 440000 15440000 Cash Flows from investing Activites Purchase of Machetény qy flows from Investing Activities 5400000 Net (5400000 I can flows from Financing Activities Proceeds from issue of long term Debt Djullends paid to shareholders elet cash flows from Financing Activities 1000000 (800000) 200000 240000 100000 I Net Incregie in Gih during the year It cash at the begining of the year cash at the End of the year __ 340000