Question

Wilkes Company had the following transactions during the current year: Earned revenues of $100,000 and incurred expenses of $56,000, all in cash. Purchased a truck for $25,000. Sold land for $10,000. Borrowed $15,000 from a local bank. What was the total change in cash during the year

Answer 1

Answer: $44,000

Explanation:

Change in Cash in operating activities:

= Revenues - expenses

= 100,000 - 56,000

= $44,000

Change in cash in Investing activities

= Sold land - Purchase of truck

= 10,000 - 25,000

= -$15,000

Change in cash from financing activities

= Borrowed $15,000 from local bank

= $15,000

Total change in cash:

= 44,000 -15,000 + 15,000

= $44,000