Given the Following Data, Answer the Questions That Follow Additional Information

question 153

Essay

Given the following data, answer the questions that follow.
Income Statement
For the Year Ended 12/31/Year 2 Additional Information: $\begin{array} { | l | l | } \hline \text { Net Sales } & \$ 1,500,000 \\\hline \text { Cost of goods sold } & ( 800,000 ) \\\hline \text { Cash operating expenses } & ( 400,000 ) \\\hline \text { Depreciation and amortization expense } & ( 100,000 ) \\\hline \text { Gain on sale of equipment } & 60,000 \\\hline \text { Net income } & \$ 260,000 \\\hline\end{array}$
Additional Information:
$$\begin{array} { | l | l | } \hline \text { 1. Increase in accounts receiable during Year } 2 & \$ 40,000 \\\hline \text { 2. Decrease in inventory during Year 2 } & 30,000 \\\hline \text { 3. Inc rease in accounts payable } & 44,000 \\\hline \text { 4. Sale of old equipment tor cash } & 130,000 \\\hline \text { 5. Dividends declared - } \$ 90,000 \text {; Dw idends paid } & 80,000 \\\hline \text { 6. New building acquired by issuing common shares } & 84,000 \\\hline \text { 7. Sold bonds for cash - proceeds of } & 150,000 \\\hline\end{array}$$
1) What was cash from customers during year 2?
2) What was cash paid to suppliers during year 2?
3) What was net cash inflow from operating activities during year 2?
4) What was net cash inflow (outflow) from investing activities during year 2?
5) What was net cash inflow (outflow) from financing activities during year 2?

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Definitions:

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