Reference no: EM132729572

Problem 1: Overall the company's cash increased during the year. The company has positive cash flows from operating activities, but negative cash flows from investing and financing activities. How would you classify the company?

Group of answer choices

(a) They are a growing company needing a lot of cash for financing activites

(b) They are a stable company with operating cash to pay for investing and financing needs

(c) They should work on having a positive cash flow from investing activites

(d) There's a going concern assumption that they won't stay in business much longer

Problem 2: WB Champions had the following transactions during 2015:

Issued par value common stock for cash of $20,000

Recorded and paid salaries of $7,500

Acquired a building by issuing common stock of $38,000

Declared and paid a cash dividend of $2,000

Sold a long-term investment for cash of $3,500

Recorded cash sales of $24,500

Purchased inventory for cash of $13,600

Acquired an investment in Winning Co. stock for cash of $1,000

Declared a stock dividend of $7,000

Repaid a 4 year bonds of $4,000

What is the net cash provided by operating activities?

Group of answer choices

(a) $16,400

(b) $400

(c) $3,900

(d) $3,400