Question: Based on the following information, compute cash flows from financing activities under GAAP. Purchase of investments 300 Dividends paid Interest paid Additional borrowing from bank


Based on the following information, compute cash flows from financing activities under GAAP. Purchase of investments 300 Dividends paid Interest paid Additional borrowing from bank 1,250 450 3,050 Cash Flows from Financing Activities The following are the cash flows for each of the independent cases. Case 1 Case 2 Case 3 $(120,000) $ 80,000 (40,000) (30,000) 10,000 30,000 Cash provided by (used for) operating activities Cash provided by (used for) investing activities Cash provided by (used for) financing activities Net change in cash Cash position at beginning of year 3,000 (70,000) 10,000 75,000 75,000 (35,000) 8,000 2,000 40,000 $ 10,000 $40,000 Cash position at end of year 5,000 Classify each of the following cases as a growing start-up company (S), a healthy established company (E), or an established company facing financial difficulties (F) Case 1 Case 2 Case 3
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