Problem:
Hoover Industries Cash Flow (in millions)
CASH RECEIVED FROM:
Customers $ 1,800
Interest on investments 200
Sale of land 5,100
Sale of capital stock 600
Issuance of debt securities 2,000
CASH PAID FOR:
Interest on debt $ 300
Income tax 80
Debt principal reduction 1,500
Purchase of equipment 3,000
Purchase of inventory 1,000
Dividends on capital stock 200
Operating expenses 500
Loaned $1,200 to customer on note receivable
Hoover would report net cash inflows (outflows) from investing activities in the amount of: ___________ ?
Question 1: Rowdy's Restaurants Cash Flow (in millions)
CASH RECEIVED FROM:
Customers $ 1,800
Interest on investments 200
Sale of land 100
Sale of capital stock 600
Issuance of debt securities 2,000
CASH PAID FOR:
Interest on debt $ 300
Income tax 80
Debt principal reduction 1,500
Purchase of equipment 4,000
Purchase of inventory 1,000
Dividends on capital stock 200
Operating expenses 500
Rowdy's would report net cash inflows (outflows) from operating activities in the amount of: ________ ?
Question 2: Following are the income statement and some additional information for Carolina Consulting Company.
Carolina Consulting Company
Income Statement
For the Year Ended December 31, 2006
Net sales................... $10,000
Less Cost of goods sold........... 1,500
=Gross margin................... 8,500
Less Operating expenses........... $2,000
Less Depreciation expense............. 900
=Income before taxes.................5,600
Less Income taxes................... 1,600
Net income $4,000
All sales were on credit and accounts receivable decreased by $900 this year compared to last year. Merchandise purchases were on credit with a decrease in accounts payable of $700 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 during the year. All operating expenses were paid for in cash.
What was the net cash inflow from operating activities?