Sheridan Beverage Company reported the following items in the most recent year.
Net income $49,000 Dividends paid 6,810 Increase in accounts receivable 13,660 Increase in accounts payable 8,660 Purchase of equipment (capital expenditure) 9,020 Depreciation expense 5,660 Issue of notes payable 22,020
Compute net cash provided by operating activities, the net change in cash during the year. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in CashIssue Notes Payable Increase in Accounts Receivable Decrease in Accounts Payable Increase in Accounts Payable Purchase of Equipment Dividends Net Income Decrease in Accounts Receivable Depreciation Expense Compute free cash flow.Free Cash Flow $Brief Exercise 5-12 Keyser Beverage Company report

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armani.frami · Accepted Answer

Answer:Net cash provided by operating activities $49,660Net change in cash $55,850Explanation:Computation for the Net cash provided by operating activitiesNet income$49,000Add Increase in accounts payable 8,660Add Depreciation expense 5,660Less Increase in accounts receivable (13,660)Net cash provided by operating activities $49,660Cash flow from investing activitiesLess Purchase of equipment (capital expenditure) (9,020)Cash flow from financing activitiesAdd Issue of notes payable 22,020Less Dividend (6,810)Cash flow from financing activities 15,210(22,020-6,810)Net change in cash $55,850($49,660-9,020+15,210)Therefore Net cash provided by operating activities will be $49,660 and the Net change in cash will be $55,850

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