Question

The following is cash flow data for Rocket Transport: Cash dividend $ 86,000 Purchase of bus $ 45,000 Interest paid on debt $ 25,000 Sales of old equipment $ 63,000 Repurchase of stock $ 58,000 Cash payments to suppliers $ 95,000 Cash collections from customers $ 360,000 a. Find the net cash provided by or used in investing activities. (Input the amount as positive value.) b. Find the net cash provided by or used in financing activities. (Input the amount as positive value.) c. Find the net increase or decrease in cash for the year. (Input the amount as positive value.)

Answer 1

a. Find the net cash provided by or used in investing activities.

Sales of old equipment $63,000

Purchase of bus ($45,000)

net cash flow from investing activities = $18,000

b. Find the net cash provided by or used in financing activities.

Repurchase of stock ($58,000)

Cash dividend ($86,000)

net cash flow from financing activities = ($144,000)

c. Find the net increase or decrease in cash for the year.

cash flows from operating activities = $360,000 - $95,000 - $25,000 = $240,000

net cash increase = $240,000 + $18,000 - $144,000 = $114,000