Hindsville Company reported revenues of $165,000 and net income of $20,000 for 2014. Cash generated by operations was $40,000. In addition, Hindsville Company borrowed $24,000 from a bank. During 2014, Hindsville purchased new equipment for $30,000 cash and paid cash dividends of $15,000 to stockholders. Hindsville's cash balance at the beginning of 2014 was $22,000.
A Identify the amount of cash flows for financing, investing, and operating activities for 2014 by filling in the amounts below.
Financing Cash Flows: Investing Cash Flows: Operating Cash Flows:
B Did Hindsville Company's operating activities generate enough cash to cover its investing and financing activities? Explain.
C How much did Hindsville Company's cash balance increase or decrease during 2014?

Question

Hindsville Company reported revenues of $165,000 and net income of $20,000 for 2014. Cash generated by operations was $40,000. In addition, Hindsville Company borrowed $24,000 from a bank. During 2014, Hindsville purchased new equipment for $30,000 cash and paid cash dividends of $15,000 to stockholders. Hindsville's cash balance at the beginning of 2014 was $22,000.
A Identify the amount of cash flows for financing, investing, and operating activities for 2014 by filling in the amounts below.
Financing Cash Flows: Investing Cash Flows: Operating Cash Flows:
    B Did Hindsville Company's operating activities generate enough cash to cover its investing and financing activities? Explain.
C How much did Hindsville Company's cash balance increase or decrease during 2014?

Quizplus · Accepted Answer

The Answer of Hindsville Company reported revenues of $165,000 and net income of $20,000 for 2014. Cash generated by operations was $40,000. In addition, Hindsville Company borrowed $24,000 from a bank. During 2014, Hindsville purchased new equipment for $30,000 cash and paid cash dividends of $15,000 to stockholders. Hindsville's cash balance at the beginning of 2014 was $22,000.
A Identify the amount of cash flows for financing, investing, and operating activities for 2014 by filling in the amounts below.
Financing Cash Flows: Investing Cash Flows: Operating Cash Flows:
    B Did Hindsville Company's operating activities generate enough cash to cover its investing and financing activities? Explain.
C How much did Hindsville Company's cash balance increase or decrease during 2014?

Hindsville Company Reported Revenues of $165,000 and Net Income of $20,000