Cash Flow Computations
From the following selected data, compute:
1. Net cash flow provided (used) by operating activities.
2. Net cash flow provided (used) by investing activities.
3. Net cash flow provided (used) by financing activities.
4. Net increase (decrease) in cash during the year.
5. The cash balance at the end of the year.

Cash receipts from:
Customers.. . $270,000
Investments by owners.. . 54,000
Sale of building.. . 90,000
Proceeds from bank loan.. . 60,000
Cash payments for:
Wages.. . $ 82,000
Utilities.. . 3,000
Advertising.. . 4,000
Rent.. . 36,000
Taxes.. . 67,000
Dividends.. . 20,000
Repayment of principal on loan.. . 40,000
Purchase of land.. . 106,000
Cash balance at beginning of year.. . $386,000

This is what I have, and I think I am missing something, or have a mistake in there. Can you help me please?

Thank you.

1. Operating Activities
Customers $270,000
Wages $(82,000)
Rent $(36,000)
Utilities $(3,000)
Taxes $(67,000)
Advertising $(4,000)

Net cash flow provided (used) by Operating Activities $ 78,000

2. Investing Activities
Sale of Building $90,000
Purchase of Land $ (106,000)

Net cash flow provided (used) by Investing Activities $16,000

3. Financing Activities
Proceeds from bank loan $ 60,000
Repayment of principle loan $(40,000)
Dividends $(20,000)
Investments by owners $54,000

Net cash flow provided (used) by Financing Activities $54,000

4. Net increase 78,000 + 16,000 + 54,000 = 148,000

5. The cash balance at the end of the year =$148,000

Cash Flow Classifications
For each of the following items, indicate whether it would be classified and reported under the operating activities (OA), investing activities (IA), or financing activities (FA) section of a statement of cash flows:

a. Cash receipts from selling merchandise
b. Cash payments for wages and salaries
c. Cash proceeds from sale of stock
d. Cash purchase of equipment
e. Cash dividends paid
f. Cash received from bank loan
g. Cash payments for inventory
h. Cash receipts from services rendered
I. Cash payments for taxes
j. Cash proceeds from sale of property no longer needed as expansion site

Cash receipts from selling merchandise (OA) Operating Activities
Cash payments for wages and salaries (OA) Operating Activities
Cash proceeds from sale of stock (IA) Investing Activities
Cash purchase of equipment (IA) Investing Activities
Cash dividends paid (IA) Investing Activities
Cash received from bank loan (FA) Financing Activities
Cash payments for inventory (OA) Operating Activities
Cash receipts from services rendered (OA) Operating Activities
Cash payments for taxes (OA) Operating Activities
Cash proceeds from sale of property no longer needed as expansion site (IA) Investing Activities

Am I on the right track?

Thank you!

Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html

Quote:

---

Originally Posted by Curlyben

Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html

---

Read and understood. I did come up with my own answers and posted it for you to critique.

Thanks again!

I think there are two mistakes:
1. You have added 16,000 from Investing activities instead of deducting. Net increase will be 116,000
2. Add this to the opening cash balance of 386,000 to get the year end cash balance of 502,000