Answer:
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
According to these above explanations
(A) Operating activities: Cash paid to suppliers 103,600 and Cash received from customers 132,100
(B) Investing activities: Cash paid to purchase equipment $ 11,000
(C) Financing activities: Cash dividends paid 6,100, and Cash received from issuing common stock
Now the preparation of the cash flow statement is shown below:
Cash flow from operating activities:
Cash received from customers $132,100
Less: cash paid to suppliers -$103,600
Net cash flow from operating activities (A) $28,500
Cash flow from investing activities:
Cash paid to purchase equipment -$ 11,000
Net cash flow from investing activities (B) -$11,000
Cash flow from financing activities:
Cash received from issuing common stock $21,400
Less: Cash dividends paid -$6,100
Net cash flow from financing activities (C) $15,300
Net cash increase (A+B+C) $32,800
Add: Beginning cash balance $7,500
Ending cash balance $40,300
