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ABC Inc is a merchandising business that sells clothing to adults 1) ABC borrowed $90,000 from...

ABC Inc is a merchandising business that sells clothing to adults 1) ABC borrowed $90,000 from the bank to start the business 2) Purchased $50,000 inventory for cash. 3) Inventory costing $26,000 was sold for $50,000 cash 4) Paid $8,000 cash for operating expenses 1)What is the balance of cash flow from operations, financing and investing for ABC based on information above? 2) What is the ending cash balance?

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Answer #1

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Cash flows from Operations
Cash paid for Inventory ($50,000)
Cash received from sales $50,000
Cash paid for Operating expenses ($8,000)
Net Cash flows from Operations ($8,000) [Requirement 1]
Cash flows from Investing activities $0 [Requirement 1]
Cash flows from Financing activities
Cash received from borrowings $90,000 [Requirement 1]
Ending balance of Cash balance $82,000 [Requirement 2]
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