Reference no: EM132485858

Star Company provided the following data for the preparation of the statement of cash flows for the current year using the direct method.

Cash balance, beginning 1,500,000

Cash paid to purchase inventory 7,800,000

Cash received from sale of trading securities 2,500,000

Cash paid for interest 450,000

Cash paid to repay a loan 1,000,000

Cash collected from customers 10,000,000

Cash received from issuance of ordinary shares 1,200,000

Cash paid for dividend 2,000,000

Cash paid for income taxes 1,350,000

Cash paid to purchase trading securities 1000,000

Question 1. What is the net cash provided by operating activities?

a. 1,900,000

b. 2,900,000

c. 2,350,000

d. 400,000

Question 2. What is the net cash used in financing activities?

a. 3,000,000

b. 2,000,000

c. 1,800,000

d. 4,200,000

Question 3. What is the cash balance at year end?

a. 3,400,000

b. 1,600,000

c. 1,400,000

d. 2,400,000