Answer:
I looked for Cable Corporation's income statement and balance sheet:
Cable Corporation
Statement of cash flows
For the year ended December 31, 202x
Cash flows from operating activities:
Net income $357,750
Adjustments to net income:
- Depreciation expense $197,500
- Increase in accounts payable $225,000
- Increase in notes payable $1,125,000
- Increase in accounts receivable ($850,000)
- Increase in inventories ($1,626,125) ($928,625)
Net cash provided by operating activities ($570,875)
Cash flows from investing activities:
Purchase of fixed assets ($1,975,000)
Net cash provided by investing activities ($1,975,000)
Cash flows from financing activities:
Issuance of long term debt $2,565,700
Dividends paid ($107,325)
Net cash provided by financing activities $2,458,375
Net decrease in cash ($87,500)
Cash balance at beginning of the year $100,000
Cash balance at the end of the year $12,500
