1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
frosja888 [35]
3 years ago
9

The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had a cash and cash equivalents bala

nce of $5,600 on January 1, 2016.
Cash Received from:
Customers $ 1,940
Interest on investments 220
Sale of land 120
Sale of common stock 640
Issuance of debt securities 2,040
Cash Paid for:
Interest on debt 320
Income tax 84
Debt principal reduction 1,540
Purchase of equipment 4,500
Purchase of inventory 1,000
Dividends on common stock 220
Operating expenses 520
Required:
Prepare a statement of cash flows for the year using the direct method for operating activities. (Amounts to be deducted should be indicated with a minus sign.)
Business
1 answer:
Alchen [17]3 years ago
5 0

Answer and Explanation:

The preparation of the cash flow statement using the direct method is presented below:  

                                         Redwood Inc.

                                     Cash flow statement

                        For the year ended December 31, 2016

Cash flow from operating activities

Cash Received from Customers $1,940

Interest on investments $220

Less: Interest on debt -$320

Less: Income tax -$84

Less: Purchase of inventory -$1,000

Less: Operating expenses -$520

Net cash provided by operating activities $236

Cash flow from investing activities  

Sale of land $120

Less: Purchase of equipment -$4,500

Net cash used by investing activities -$4,380

Cash flow from financing activities  

Sale of common stock $640

Issuance of debt securities $2,040

Less: Debt principal reduction -$1,540

Less: Dividends on common stock -$220

Net cash provided by financing activities $920

Decrease in cash -$3,224

Add: Beginning cash balance $5,600

Ending cash balance $2,376

The items which shows in a positive sign indicates the cash inflow and the items which shows in a negative sign indicates the cash outflow and the same is to be considered

You might be interested in
A customer holds 1,000 shares of ABC stock valued at 80 in a margin account. The debit balance in the account is $35,000. ABC de
Tom [10]

Answer:

C

Explanation:

Reduction of cost basis per share.

When you take a look at some of the rules that IRS has, you see that stock dividends do not get taxsd at the time of receipt. They don't get taxed because, the shareholder does not receive anything from the company, only but a hope on any increased future share price increment or appreciation.

7 0
3 years ago
Around the world oil is priced consistently in United States dollars. In economic terms this is an example of:
Zina [86]

Answer: unit of account

Explanation:

The unit of account is function of money which refers to the standard monetary unit of measurement of a good or service.

Since oil is priced consistently in United States dollars around the world, this means that dollars is the standard monetary unit of measurement and is therefore, the unit of account.

8 0
2 years ago
As a marketing manager for kitch-it-tools, jim is frustrated with the way his organization markets their kitchen utensils. curre
Leokris [45]

The Kitch it tools is presently practicing mass marketing. Mass marketing is a way of having to produce products or serve their market or business in a wide variety or large scale in which the kitch it tools has the aim of targeting largest possible number of people.

6 0
3 years ago
Which statement best describes payday leaders and pawnbrokers?
miv72 [106K]
C: They charge extremely high interest rates.
6 0
2 years ago
Read 2 more answers
how can you guarantee that your talk or speech will be interesting to your audience? Is this good advice? Why or why not? Justif
Rashid [163]
If you want to make sure it's interesting, you have to cater your speech/talk to your target audience. This is good advice. A 15-page detailed Powerpoint presentation with note cards would do as much good when presenting to kindergarteners as a water hose would do good in a flood. But, say, it was a fire, then the water hose might come in handy. In our case, your boss at the business meeting would find your Powerpoint much more interesting than kindergarteners would. 

Hope this helps! Have a nice day :)
7 0
3 years ago
Other questions:
  • The measure of the way quantity supplied reacts to a change in price is
    10·1 answer
  • "You need to have $15,000 in five years to pay off a home equity loan. You can invest in an account that pays 5.75 percent compo
    13·1 answer
  • Lowering the interest rate will:A. decrease spending on new homes. B. decrease spending on consumer durables. C. decrease the va
    11·1 answer
  • Which of the following is true of preferred stocks? A. Like bonds preferred stocks are due for payment on a fixed maturity date
    11·1 answer
  • what will happen if a shoe firm sells its shoes at a price lower than the opportunity cost of the input used in the production p
    13·1 answer
  • Which of the following is an example of institutional advertising?
    8·2 answers
  • If you have serious concerns about the qualifications of a job candidate who has asked you for a written recommendation, you sho
    10·1 answer
  • Which situation best illustrates the concept of elastic demand for a product?
    15·2 answers
  • What is a keogh plan?
    9·1 answer
  • Today, _______ recognize LLCs and provide both procedural (formation) and internal default rules (in the event the parties are u
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!