Cypress Corp. went into business on October 1, 2020. Cypress had the following transactions during 2020: • Oct. 1 - Issued a total of 20 shares of stock to two stockholders for a total of $6,000. Oct. 1 - Borrowed $20,000 from the bank. No payments will be made on this loan until October 1, 2022, when $24,000 will be due. • Oct. 12 - Purchased land for $8,000 in cash. • Nov. 1 - Purchased equipment for $12,000 in cash. The equipment is expected to last for four years with no salvage value. Nov. 15 - Purchased $5,000 inventory, half in cash and half on account. Dec. 1 - Purchased six months of insurance for $1,200. • Dec. 10 - Sold $2,000 of inventory for $4,500 in cash. Dec. 12 - Sold one-half of land for $5,000 in cash. Dec. 13 - Paid balance owed on accounts payable. • Dec. 18 - Sold $1,500 of inventory for $2,500 on account. Dec. 31 - Paid $1,000 in dividends. What were the net operating cash flows for Cypress during 2020? $3,300 $800 O ($600) O ($1,700) O None of the above

Cypress Corp. went into business on October 1, 2020. Cypress had the following transactions during 2020: • Oct. 1 - Issued a total of 20 shares of stock to two stockholders for a total of $6,000. Oct. 1 - Borrowed $20,000 from the bank. No payments will be made on this loan until October 1, 2022, when $24,000 will be due. • Oct. 12 - Purchased land for $8,000 in cash. • Nov. 1 - Purchased equipment for $12,000 in cash. The equipment is expected to last for four years with no salvage value. Nov. 15 - Purchased $5,000 inventory, half in cash and half on account. Dec. 1 - Purchased six months of insurance for $1,200. • Dec. 10 - Sold $2,000 of inventory for $4,500 in cash. Dec. 12 - Sold one-half of land for $5,000 in cash. Dec. 13 - Paid balance owed on accounts payable. • Dec. 18 - Sold $1,500 of inventory for $2,500 on account. Dec. 31 - Paid $1,000 in dividends. What were the net operating cash flows for Cypress during 2020? $3,300 $800 O ($600) O ($1,700) O None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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