During 2014, Wimbrow Images Reported $60,000 of Net Income and Generated

question 57

Essay

During 2014, Wimbrow Images reported $60,000 of net income and generated $80,000 of cash from operations.
During the year, Wimbrow Images paid $15,000 to purchase a new delivery truck and also paid dividends in the amount of $30,000. Wimbrow Images borrowed $40,000 cash from the bank. At the beginning of the year, cash amounted to $50,000.
A Prepare a statement of cash flows for the year ended December 31, 2014.
B How much more cash does Wimbrow Images have available at the end of the year than at the beginning?
C Why is there a difference between net income and cash flows from operations?

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Definitions:

Basic Motivation

The fundamental reasons or driving forces behind individuals' actions and behaviors.

Personal Benefits

Advantages or gains that accrue to an individual, which can be of financial, physical, or emotional nature.

Selfish Desires

Individual wants or motivations focused on personal gain, often at the expense of others.

Economizing Behavior

The process of seeking to achieve maximum utility for minimal expenditure, or making decisions that reflect an optimal allocation of resources.