Answer:
1. b. $1,198 Inflow
2. a. $2,143 outflow
3. a. $1,587 Inflow.
Explanation:
<u>Determination of net cash provided by operating activities</u>
$
Cash flow from Operating Activities
Net income 1,878
Adjust for :
Depreciation expense 184
Decrease in inventory 253
Increase in prepaid rent (75)
Increase in accounts receivable (530)
Increase in accounts payable 160
Gain on sale of land (136)
Net cash provided by operating activities 1,734
<u>Determination of net cash provided by Investing activities</u>
$
Cash flow from Investing Activities
Purchase of equipment (2,210)
Cash received from the sale of land 67
Net cash provided by Investing activities (2,143)
<u>Determination of net cash flow by financing activities</u>
$
Cash flow from Financing Activities
Payment of dividends (360)
Issuance of common stock 2,440
Repayment of notes payable (493)
Net cash flow by financing activities 1,587
