[marty93]

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

I have to compute the following information based on the information above.

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.

Here is what I have:

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 in cash during the year………………….$148,000

5) The cash balance at end of year………………………$534,000

Is this correct? Do I just add my three net cash flows together to get #4 then add that number to my cash balance from the beginning of the year? For #4 I got 148,000 (oper.78,000 + investing 54,000+financing 16,000). For #5 I got $534,000?

To get #5 I took the cash balance at the beginning of the year $386,000 and added that to $148,000 Total net cash flow for all activities which came to $534,000.

I am just not quite sure if I did these last two steps correctly. If someone would just let me know if I am right I would greatly appreciate it. It's only my third week of accounting class so I'm still learning here. Thanks!

[morgaine300]

Everything is correct, except that your cash flow USED BY investing is negative.