Hindsville Company reported revenues of $165,000 and net income of $20,000 for 2017.Cash generated by operations was $40,000.In addition,Hindsville Company borrowed $24,000 from a bank.During 2018,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 2017 was $22,000.

A) Identify the amount of cash flows for financing, investing, and operating activities for 2017 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.

Question

Hindsville Company reported revenues of $165,000 and net income of $20,000 for 2017.Cash generated by operations was $40,000.In addition,Hindsville Company borrowed $24,000 from a bank.During 2018,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 2017 was $22,000.
​
 A) Identify the amount of cash flows for financing, investing, and operating activities for 2017 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.

Quizplus · Accepted Answer

The Answer of Hindsville Company reported revenues of $165,000 and net income of $20,000 for 2017.Cash generated by operations was $40,000.In addition,Hindsville Company borrowed $24,000 from a bank.During 2018,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 2017 was $22,000.
​
 A) Identify the amount of cash flows for financing, investing, and operating activities for 2017 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.

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