Statement of Cash Flows
Statement of Cash Flows of the Nice Suit Dry Cleaning Company
Parama Sigurdsen
University of People, MBA BUS 5110
Unit 5 Written Assignment
1 Statement of Cash Flows
Statement of Cash Flows of the Nice Suit Dry Cleaning Company
Introduction
The cash flow statement of the Nice Suit Dry Cleaning Company had the following data missing:
1. Cash paid out to suppliers and employees
2. Net cash used in investing activities
3. Repayments on loans
4. Net increase in cash
5. Cash balances, beginning of year
Using the data available to us, we will calculate the values of these five line items to complete
the cash flow statement of the company. Understanding the Statement of Cash Flows (SOCF)
We need …show more content…
Cash paid out to suppliers and employees (missing value = -3,559,073)
The value can be determined by subtracting the amount of Net cash provided by operating activities ($72,074) from the combined sum of Cash received from customers ($3,701,327), Interest paid (-$28,134), and Taxes paid (-$42,046). It is worth noting that the cash paid out to suppliers and employees is a negative number in the operating activity as it is an outbound cash movement.
Operating activities include payroll expenditures and accounts payable. Therefore, the item line is appropriately placed within the SOCF.
2. Net cash used in investing activities (missing value = -4,272.00)
The only line item listed under the investing activities of the Nice Suit Dry Cleaning Company is for Purchase of equipment (-4,272). Thus, logic dictates that the value of the Net cash used in investing activities will be (-4,272).
Businesses track their cash outflow and inflow related to procuring long-term assets through the investing activities of the SOCF. Procurement of equipment or machinery is generally considered a long-term asset. Thus, the line item is accurately listed in the SOCF.
3 Statement of Cash
Statement of Cash Flows of the Nice Suit Dry Cleaning Company
Parama Sigurdsen
University of People, MBA BUS 5110
Unit 5 Written Assignment
1 Statement of Cash Flows
Statement of Cash Flows of the Nice Suit Dry Cleaning Company
Introduction
The cash flow statement of the Nice Suit Dry Cleaning Company had the following data missing:
1. Cash paid out to suppliers and employees
2. Net cash used in investing activities
3. Repayments on loans
4. Net increase in cash
5. Cash balances, beginning of year
Using the data available to us, we will calculate the values of these five line items to complete
the cash flow statement of the company. Understanding the Statement of Cash Flows (SOCF)
We need …show more content…
Cash paid out to suppliers and employees (missing value = -3,559,073)
The value can be determined by subtracting the amount of Net cash provided by operating activities ($72,074) from the combined sum of Cash received from customers ($3,701,327), Interest paid (-$28,134), and Taxes paid (-$42,046). It is worth noting that the cash paid out to suppliers and employees is a negative number in the operating activity as it is an outbound cash movement.
Operating activities include payroll expenditures and accounts payable. Therefore, the item line is appropriately placed within the SOCF.
2. Net cash used in investing activities (missing value = -4,272.00)
The only line item listed under the investing activities of the Nice Suit Dry Cleaning Company is for Purchase of equipment (-4,272). Thus, logic dictates that the value of the Net cash used in investing activities will be (-4,272).
Businesses track their cash outflow and inflow related to procuring long-term assets through the investing activities of the SOCF. Procurement of equipment or machinery is generally considered a long-term asset. Thus, the line item is accurately listed in the SOCF.
3 Statement of Cash