Question: Three Part Question: A) Vanburen Ltd reported a net loss of $10,000. This included a depreciation expense of $12,000 and a gain on sale of
Three Part Question:
A)
Vanburen Ltd reported a net loss of $10,000. This included a depreciation expense of $12,000 and a gain on sale of equipment of $7,000. During the year, working capital accounts changed as follows: Accounts payable increased by $10,000; accounts receivable decreased by $5,000; and inventory increased by $8,000. What was the cash flow from operating activities?
a.
Net cash inflow of $15,000
b.
Net cash inflow of $8,000
c.
Net cash outflow of $2,000
d.
Net cash inflow of $2,000
e.
Net cash outflow of $8,000
B)
For wages payable in 2021, the opening balance was $24,000, while the closing balance is $18,000. The wages expense totalled $160,000 in 2021. What was the cash paid to employees in 2021?
a.
$184,000
b.
$154,000
c.
$142,000
d.
$166,000
e.
$160,000
C) Eastwood Ltd engaged in the following activities for the year ended 31 March 2022:
- Sold its investment in Brooten Ltd for $70,000 cash (note: this investment had been purchased several years ago and was valued on the balance sheet at $66,000).
- Purchased shares in Pantzer Ltd for $52,000 cash.
- Purchased NZ Government bonds for $100,000 cash.
- Issued Eastwood Ltds shares to investors for $100,000 cash.
What is the net cash flow from investing activities?
a.
Net cash outflow of $82,000
b.
Net cash outflow of $46,000
c.
Net cash outflow of $18,000
d.
Net cash inflow of $18,000
e.
Net cash outflow of $148,000
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