Exercise 1-9 (Algo) Prepare a statement of cash flows (LO1-3) Garcia Trade has the following cash transactions for the period. Accounts Amounts Cash received from sale of products to customers $37,500 Cash received from the bank for long-term loan 42,500 Cash paid to purchase factory equipment (47,500) Cash paid to merchandise suppliers (11,500) Cash received from the sale of an unused warehouse 12,500 Cash paid to workers (23,500) Cash paid for advertisement (3,500) Cash received for sale of services to customers 27,500 Cash paid for dividends to stockholders (5,500) Assume the balance of cash at the beginning of the period is $4,500. Required: 1. Calculate the ending balance of cash.2. Prepare a statement of cash flows.
Exercise 1-9 (Algo) Prepare a statement of cash flows (LO1-3) Garcia Trade has the following cash transactions for the period. Accounts Amounts Cash received from sale of products to customers $37,500 Cash received from the bank for long-term loan 42,500 Cash paid to purchase factory equipment (47,500) Cash paid to merchandise suppliers (11,500) Cash received from the sale of an unused warehouse 12,500 Cash paid to workers (23,500) Cash paid for advertisement (3,500) Cash received for sale of services to customers 27,500 Cash paid for dividends to stockholders (5,500) Assume the balance of cash at the beginning of the period is $4,500. Required: 1. Calculate the ending balance of cash.2. Prepare a statement of cash flows.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 1-9 (Algo) Prepare a statement of cash flows (LO1-3)
Garcia Trade has the following cash transactions for the period.
| Accounts | Amounts |
|---|---|
| Cash received from sale of products to customers | $37,500 |
| Cash received from the bank for long-term loan | 42,500 |
| Cash paid to purchase factory equipment | (47,500) |
| Cash paid to merchandise suppliers | (11,500) |
| Cash received from the sale of an unused warehouse | 12,500 |
| Cash paid to workers | (23,500) |
| Cash paid for advertisement | (3,500) |
| Cash received for sale of services to customers | 27,500 |
| Cash paid for dividends to stockholders | (5,500) |
Assume the balance of cash at the beginning of the period is $4,500.
Required:
1. Calculate the ending balance of cash.
2. Prepare a statement of cash flows.
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