11 tropical fruit company had the following transactions during the month of august 4352191

11.Tropical Fruit Company had the following transactions during the month of August.

1.Wages were paid to employees totaling $48,000.

2.Sales to customers totaled $540,000. All sales are made on terms of 15-day credit.

3.Payments to suppliers of inventory totaled $360,000.

4.Collections from customers totaled $488,000.

5.The $80,000 principal of a bank loan obtained last year was paid off in full.

6.Processing equipment was purchased for $72,000 cash.

7.Owners of the firm withdrew funds from the business totaling $132,000.

8.Inventory was acquired during the period on credit at a cost of $336,000.


Determine each of the following amounts:

a.Net cash flow from operating activities for the month.

b.Net cash flow from financing activities for the month.

c.Net cash flow from investing activities for the month.

d.Sales revenue for the month.

12.The Biofeedback Company had the following transactions during its first month of business:

1.Owners contributed $30,000 to start the firm.

2.Inventory costing $16,000 was purchased for cash.

3.The first month's rent of $4,000 was paid in cash.

4.One-half of the inventory was sold to customers on credit for $12,400.

5.Advertising was run costing $3,600. It will be billed and paid for during the second month.

6.Additional inventory costing $14,000 was purchased for cash and sold to customers for $22,000 cash.

7.At month end the employees were paid $5,000 in cash and an additional $1,600 of wages was owed to them, but had not been paid.

8.On the last day of the month, equipment costing $11,000 was purchased for cash.


Prepare a schedule that shows how cash flow from operations for the first month is determined.

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