Question

Question 2 1 pts Based on the faures below, create a Cash Flow Statement, use this blank Cash Flow Statement form to help you. Purchased Property, Plant & Enument 75.00 Accounts Receivable 15.000 Payment for Total Expenses 275.000 Accounts Payable 10.000 Net Sales to Customers Owner Investment 50,000 Depreciation Expense Taken 15,000 Owner Withdrawals 20,000 Proceeds from the sale of PPE Repayment of LT Debt 10,000 Beginning Cash Balance 25.500 Payments for Income Taxes 100, 500 Payments for Inventory 72.000 Answers (whole numbers only, do not use decimals Ending Cash Balance: Nel Cash Flow from Investing Activities: Nct Cash Flow from Operating Activities: Net Change in Cash Balance for the Current Year:

How do I answer the following questions?v from the data above

Answer 1

Answer:
Ending Cash Balance = 290,000
Net Cash flow from Investing Activities = (70,000)
Net Cash flow from Operating Activities = 314,500
Net change in cash for the current year = 264,500


Statement showing Preparation of Cash flow statement:

Particulars	Amount	Amount
Cash flow from Operating Activities (CFOA):
Net sales	770,000
Payment for total expenditure	(275,000)
Payment for Inventory	(72,000)
Payment of income Taxes	(108,500)
Net Cash flow from Operating Activities		314,500
Cash flow from Investing Activities (CFIA):
Purchase of PPE	(75,000)
Sale of PPE	5,000
Net Cash flow from Investing Activities		(70,000)
Cash flow from Financing Activities (CFFA):
Repayment of LT Debt	(10,000)
Owner's Investment	50,000
Owner's withdrawals	(20,000)
Net Cash flow from Financing Activities		20,000
Net change in cash for the current year		264,500
Add: Beginning Cash Balance		25,500
Ending Cash Balance		290,000

Explanation:
The Cash Flow Statement presents the cash inflows and outflows of the various operations of the organization, the net capital increase or decrease, and the corresponding cash balance at the end of the year. Cash inflows apply to cash receipts, while payments include cash outflows.

Operating activities correspond to the company's core processes, such as the supply of consulting services, the procurement of inventories and materials, the disposal of inventories for merchandising and production purposes, the processing of payments, the payment of suppliers' bills, etc. Operating activities usually apply to that containing existing assets and ongoing liabilities.

Activities affecting cash flows which are not usual in business operations are termed as cash flow from investing activities and cash flow from financing activities