Question 4 & 5

1: 3 2 Calculate ending owner's equity from the information provided: Beginning owner's equity Net income Owner withdrawals Equity contributed from spouse's off-farm income $1,350,000 $205,000 $64,000 $21,000 5 6 1 un $1,035,000 --- 9 $1,060,000 CO! 1 $1,081,000 $1,286,000 S1,512,000 Question 5 (10 points) Suppose the following net cash flows are recorded for the preceding year: Operating activities $100,000 Investing activities - $40,000 (i.e. negative $40,000) Financing activities $25,000 Determine the end-of-year cash balance, if the beginning-of-year cash balance was $40,000