pany has been in business for 20 years. The business is family owned and operated. The last fiscal year of 2022 provided the following cash flow statement section totals: Travel Corporation – Cash Flow Statement For 2022 Cash Flow Section Cash From Operations$400,000 Cash From Financing Activities$200,000 Cash Used In Investing Activities$(400,000)
(Question 1)
The Travel Corporation is a canoe manufacturer. The company is very well established in Northern Ontario. The company has been in business for 20 years. The business is family owned and operated. The last fiscal year of 2022 provided the following
Travel Corporation – Cash Flow Statement For 2022
Cash Flow Section
Cash From Operations$400,000
Cash From Financing Activities$200,000
Cash Used In Investing Activities$(400,000)
Required
a) During the last fiscal year of 2022, there was
b) If the company had $50,000 in cash at the end of 2021, calculate the cash at the end of 2022.
b) During 2022, The Travel Corporation borrowed a net amount of $200,000 from the Bank to purchaseproperty for $400,000. Explain if the business should have borrowed more or less funds.
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