Tech Gear Corp. started the year with $100,000 cash and reported net cash provided by operating activities of $200,000, cash paid for dividends of $40,000, cash received from stock issuance of $30,000, cash paid for equipment purchases of $150,000, cash paid for intangible assets of $100,000, and cash paid on bank loan of $35,000. Calculate the following: 1. Net cash provided by (used in) investing activities. 2. Net cash provided by (used in) financing activities. 3. Ending cash. 4. Free cash flow.
Tech Gear Corp. started the year with $100,000 cash and reported net cash provided by operating activities of $200,000, cash paid for dividends of $40,000, cash received from stock issuance of $30,000, cash paid for equipment purchases of $150,000, cash paid for intangible assets of $100,000, and cash paid on bank loan of $35,000. Calculate the following: 1. Net cash provided by (used in) investing activities. 2. Net cash provided by (used in) financing activities. 3. Ending cash. 4. Free cash flow.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tech Gear Corp. started the year with $100,000 cash and reported net cash provided by operating activities of $200,000, cash paid for dividends of $40,000, cash received from stock issuance of $30,000, cash paid for equipment purchases of $150,000, cash paid for intangible assets of $100,000, and cash paid on bank loan of $35,000. Calculate the following:
1. Net cash provided by (used in) investing activities.
2. Net cash provided by (used in) financing activities.
3. Ending cash.
4. Free cash flow .
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Transcribed Image Text:• Does the company generate sufficient cash from the use of current assets and liabilities (or operating
activities)?
• What are its major sources (inflows) and uses (outflows) of cash during the period?
• Did the company's cash balance increase or decrease during the period? How much?
• Based on the cash flows from three activities, is the company healthy overall? Why do you say so?
3) Summarize your answers in a Word Document with the filename: 'Last Name First Name-Week 7 Assignment."
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