The Following Information Is Available for Redcands Company Instructions
Based on the Preceding Information, Compute the Net Cash

question 143

Essay

The following information is available for Redcands Company: $$\begin{array} { l r } \text { Receipts from customers } & \$ 215,000 \\\text { Dividends from stock investments } & 3,000 \\\text { Proceeds from sale of equipment } & 18,000 \\\text { Proceeds from issuance of stock } & 90,000 \\\text { Payments for inventory } & 100,000 \\\text { Payments for operating expenses } & 78,000 \\\text { Interest paid } & 6,000 \\\text { Taxes paid } & 4,000 \\\text { Dividends paid } & 20,000\end{array}$$ Instructions
Based on the preceding information, compute the net cash provided by operating activities.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders from profits, distributing earnings in the form of cash.

Equity Securities

Equity securities represent ownership interest held in a company by investors in the form of shares of stock, which may generate income through dividends and potential appreciation.

Highly Liquid Securities

Financial instruments that can easily be converted into cash with minimal impact on their price.

Low-Risk Securities

Investments that have a lower chance of loss or default, often characterized by more stable returns.