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Problem 19-15 The following is cash flow data for Rocket Transport: Cash dividend Purchase of bus Interest paid on debt Sales of old equipment Repurchase of stock Cash payments to suppliers Cash collections from customers $ 89,000 $ 25,000 $ 25,000 $ 58,500 $ 82,000 $125,000 $390,000 a

Finance Nov 20, 2020

Problem 19-15 The following is cash flow data for Rocket Transport: Cash dividend Purchase of bus Interest paid on debt Sales of old equipment Repurchase of stock Cash payments to suppliers Cash collections from customers $ 89,000 $ 25,000 $ 25,000 $ 58,500 $ 82,000 $125,000 $390,000 a. Find the net cash provided by or used in investing activities. (Input the amount as positive value.) Net cash investing activities
b. Find the net cash provided by or used in financing activities. (Input the amount as positive value.) Net cash financing activities c. Find the net increase or decrease in cash for the year. (Input the amount as positive value.) Net in cash

Expert Solution

Cash provided by investing activities = Sale of old equipment - Purchase of bus

= 58500 - 25000

= 33500

Cash used by financing activities = Repurchase of stock + Cash dividend

= 82000 + 89000

= 171000

Net increase = Cash provided by operating activities + Cash provided by investing activities - Cash used in financing activities

Cash provided by operating activities = Cash collection - Cash payments - Interest payment

= 390000 - 125000 - 25000

= 240000

Net increase in cash = 240000 + 33500 - 171000

= 102500

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