Refer PB1-3.
Other cash flow information:
Additional investments by stockholders........................ $ 34,000
Other cash flow information:
Additional investments by stockholders... $ 34,000
Cash paid to purchase equipment... 40,000
Cash paid to suppliers and employees... 1,490,000
Repayments of borrowings... 155,000
Cash received from customers... 1,661,000
Cash received from borrowings... 5,000
Dividends paid in cash... 10,000
Required:
1. Did Cheese Factory's cash balance increase or decrease during the year ended August 31, 2015? Which financial statement shows the reasons for this change?
2. What would Cheese Factory's 2015 net income have been had it given a 5 percent pay increase to all employees on September 1, 2014? Which financial statement did you use to answer this?