A cattle ranch started last year with $64000 in its cash account. Within the year, all the events that affected cash are summarized in the following table:

  Cash paid for operating expenses     $210,000

  Net increase in short-term debt          $50,000

  Cash paid for purchasing of breeding stock $45,000

  Cash paid for income taxes                $25,000

  Withdrawals                                        $20,000

  Repayment of term debt                     $22,000

  Cash received from operations          $220,000

a) Arrange the information in a statement of cash flows showing net cash provided by operating activities, investing activities, and financing activities as well as the net increase(decrease) in cash and the cash at the end of the year.

b) Putting oneself in the position of a lender providing operating credit to this cattle ranch for the upcoming year, discuss any concerns that you may have based on the information displayed in the statement of cash flows  prepared.

Answer rating: 100% (QA)

a Statement of Cash Flows Net cash provided by operating activities Cash received from operations 22... View the full answer