Answer:
<u>Cash flow from operating activities
</u>
<u>Cash inflows</u>
Cash received from sale of products to customer $35,000
Cash received from sale of services to customer $25,000
<u>Cash outflows:
</u>
Cash paid to merchandise suppliers ($11,000)
Cash paid to workers ($23,000)
Cash paid for advertisement <u>($3,000)</u>
Net cash flow from operating activities $23,000
<u>Cash flow from investing activities</u>
Cash paid to purchase factory equipment ($45,000)
Cash received from sale of warehouse <u>$12,000</u>
Net cash flow from investing activities ($33,000)
<u>Cash flow from financing activities</u>
Dividend paid ($5000)
Cash received from bank loan $40,000
Net cashflow from financing activities <u>$35,000</u>
Net cash increase $25,000
Cash at the beginning of the year <u>$4,000</u>
Cash at the end of the year <u>$29,000</u>
