Answer to Question #167411 in Accounting for Jichang

Question

 2.  Below are the cash transactions of Malaysia Trading for December 31, 2019:

          Cash payment to suppliers of goods and services              P   65,000

          Cash receipts from rendering of services                               130,000

          Payment to owners                                                      13,000

          Proceeds from bank loans                                               65,000

          Proceeds from cash investment of owners                        299,000

          Payment for acquisition of equipment                              26,000

          Cash at the beginning of the year                               260,000

 

     Requirements:

     1.  How much is cash flow from operating activities?

     2.  How much is cash flow from investing activities?

     3.  How much is cash flow from financing activities?

     4.  How much is the net increase or decrease in cash for the year?

     5.  How much is cash as of December 31, 2019.

 

Answer 1

1) Operating Activities

Cash inflows

 Cash receipts from rendering of services                               130,000

Cash Outflow

 Cash payment to suppliers of goods and services                 65,000

Net Increase 65,000

2) Investing Activities

Cash Inflows

 Proceeds from bank loans                                               65,000

Cash Outflow

 Payment for acquisition of equipment                          26,000

Net Increase 39,000

3) Financing Activities

Cash Inflows

 Proceeds from cash investment of owners                        299,000

Cash Outflow

Payment to owners                                                       13,000

Net increase 286,000

4) Total net increase 390,000

5) Cash available 390,000