Response to the following problem:
Assume the following income statement and balance sheet information:
Service revenue (all cash) $175
Operating expenses
Salaries (all cash) 85
Net income $90
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|
2017 Dr. (Cr.)
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2016 Dr. (Cr.)
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|
Cash
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$1,250
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$1,600
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|
Short-term investments
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100
|
200
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|
Borrowings
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(600)
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(1,000)
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|
Common shares
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(200)
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(300)
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Retained earnings
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(550)
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(500)
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Other information: All dividends were paid in cash. The short-term investments will be converted to cash in 60 days. No gain or loss occurred when common shares were repurchased.
Required:
1. Calculate cash flow from operating activities.
2. Calculate the amount of dividends paid during the year.
3. Calculate cash flow used by financing activities.