The Following Information Is Given for Sunny Corporation The Indirect Method Is Used

question 54

Short Answer

The following information is given for Sunny Corporation:
$$\begin{array} { l r } \text { Net income } & \$ 40,000 \\\text { Depreciation expense } & 6,000 \\\text { Decrease in accounts receivable } & 5,000 \\\text { Increase in supplies on hand } & 2,000 \\\text { Sale of common stock } & 40,000 \\\text { Purchase of equipment for cash } & 40,000 \\\text { Payment of dividends } & 6,000 \\\text { Increase in accounts payable } & 5,000\end{array}$$
The indirect method is used.The beginning Cash balance is $23,000.
Required:
Answer the following questions with the information provided above.
a)The cash flow from operating activities is ________.
b)The cash flow from investing activities is ________.
c)The cash flow from financing activities is ________.
d)The net change in cash is ________.
e)The ending balance of cash is ________.

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Definitions:

Indirect Material

Materials used in the production process that cannot be directly linked to specific products, such as lubricants and cleaning supplies.

Prime Costs

The immediate expenses involved in producing a product, encompassing both the raw materials and the direct labor costs.

Conversion Costs

Conversion costs are expenses incurred when manufacturing a product or providing a service, specifically including both direct labor costs and manufacturing overhead costs.

Baker's Wages

The compensation paid to individuals who are employed to bake goods, usually considered a variable cost in the production process.