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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 $ 95,000 $ 37,000 $ 25,000 $ 49,500 $ 112,000 $ 125,000 $ 450,000 Answer is complete and correct

Finance Dec 19, 2020

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 $ 95,000 $ 37,000 $ 25,000 $ 49,500 $ 112,000 $ 125,000 $ 450,000
Answer is complete and correct. Net cash provided by investing activities $ 12.500 b. Find the net cash provided by or used in financing activities. (Input the amount as positive value.) Answer is complete but not entirely correct. financing activities S 232,000 X Net cash used in c. Find the net increase or decrease in cash for the year. (Input the amount as positive value.) Answer is complete but not entirely correct. Net increase in cash $ 205,500 X

Expert Solution

a. cash flows from investing activities

Sale of old equipment $          49,500
Purchase of bus $         (37,000)
Net cash provided by investing activities $          12,500

b. cash flows from financing activities

Repurchase of stock $ ( 112,000)
Cash dividend $ ( 95,000)
Net cash used in finacing activities $ (207,000)

c.net increase or decrease in cash for the year

cash flows from operating activities

Cash collection from customers $        450,000
Cash payment to suppliers $ (125,000)
Cash payment for interest $ ( 25,000)
Net cash provided by operating activities $        300,000

Net increase or decrease in cash for the year = cash flows from investing activities + cash flows from financing activities + cash flows from operating activities

= 12500 +(207000) +300000 = 105500

Net increase in cash $        105,500
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