Question

Accounts Amounts Cash received from sale of products to customers $ 31,000 Cash received from the bank for long-term loan 36,000 Cash paid to purchase factory equipment (41,000 ) Cash paid to merchandise suppliers (10,200 ) Cash received from the sale of an unused warehouse 11,200 Cash paid to workers (22,200 ) Cash paid for advertisement (2,200 ) Cash received for sale of services to customers 21,000 Cash paid for dividends to stockholders (4,200 ) Assume the balance of cash at the beginning of the period is $3,200. Required: 1. Calculate the ending balance of cash.

Answer 1

Ending cash balance : 22,600

Step-by-step explanation:

operating activities:

collection from products 31,000

collection from services 21,000

merchandise suppliers (10,200)

wages paid (22,200)

advertisement paid (2,200)

generated from operating activities 17,400

financing activities:

loan from the bank 36,000

dividends paid (4,200)

cash generated from financing activities 31,800

investing activities:

sale of warehouse 11,200

purchase of equipment (41,000)

cash used in investing activities (29,800)

cash generated for the period 19,400

beginning cash balance 3,200

Ending cash balance 22,600