Answer:
$88,000 net increase
Explanation:
The Cash flow Statement can be used to determine the movement in cash during the Financial Period. This Statement shows Cash movement on three levels that is : the Operating Activities. Investing Activities and Financing Activities.
Cash Flow Statement for the year ended December 31, 2017
Cash Flow from Operating Activities
Collections from Customers $ 500,000
Cash Payments to Suppliers and Employees ($ 260,000)
Cash Generated from Operations $ 240,000
Cash Payment on Interest ($ 20,000)
Net Cash from Operating Activities $ 220,000
Cash Flow from Investing Activities
Purchase of Equipment ($ 60,000)
Sales of Equipment $ 76,000
Purchase of Land ($ 28,000)
Net Cash from Financing Activities ($12,000)
Cash Flow from Financing Activities
Dividend ($ 70,000)
Common Stock ($ 50,000)
Net Cash Flow from Financing Activities ($120,000)
Movement of Cash and Cash Equivalents $88,000
The Net cash-flow for Haven Hardware for the Year 2017 is $88,000.
Cash Flow Statement for the year ended December 31, 2017
Particulars Amount Amount
Cash Flow from Operating Activities
Collections from Customers $500,000
Cash Payments to Suppliers and Employees ($260,000)
Cash Generated from Operations $240,000
Cash Payment on Interest ($20,000)
Net Cash from Operating Activities $220,000
Cash Flow from Investing Activities
Purchase of Equipment ($60,000)
Sales of Equipment $76,000
Purchase of Land ($28,000)
Net Cash from Financing Activities ($12,000)
Cash Flow from Financing Activities
Dividend ($70,000)
Common Stock ($50,000)
Net Cash Flow from Financing Activities ($120,000)
Net Cash flow $88,000
Therefore, the Net cash-flow for Haven Hardware for the Year 2017 is $88,000.
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