Tech Gear Corp. started the year with $100,000 cash and reported net cash provided by operating activities of $200,000, cash paid for dividends of $40,000, cash received from stock issuance of $30,000, cash paid for equipment purchases of $150,000, cash paid for intangible assets of $100,000, and cash paid on bank loan of $35,000. Calculate the following: 1. Net cash provided by (used in) investing activities. 2. Net cash provided by (used in) financing activities. 3. Ending cash. 4. Free cash flow.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tech Gear Corp. started the year with $100,000 cash and reported net cash provided by operating activities of $200,000, cash paid for dividends of $40,000, cash received from stock issuance of $30,000, cash paid for equipment purchases of $150,000, cash paid for intangible assets of $100,000, and cash paid on bank loan of $35,000. Calculate the following: 1. Net cash provided by (used in) investing activities. 2. Net cash provided by (used in) financing activities. 3. Ending cash. 4. Free cash flow.
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• Does the company generate sufficient cash from the use of current assets and liabilities (or operating
activities)?
• What are its major sources (inflows) and uses (outflows) of cash during the period?
• Did the company's cash balance increase or decrease during the period? How much?
• Based on the cash flows from three activities, is the company healthy overall? Why do you say so?
3) Summarize your answers in a Word Document with the filename: 'Last Name First Name-Week 7 Assignment."
Transcribed Image Text:• Does the company generate sufficient cash from the use of current assets and liabilities (or operating activities)? • What are its major sources (inflows) and uses (outflows) of cash during the period? • Did the company's cash balance increase or decrease during the period? How much? • Based on the cash flows from three activities, is the company healthy overall? Why do you say so? 3) Summarize your answers in a Word Document with the filename: 'Last Name First Name-Week 7 Assignment."
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