Reference no: EM132612038

Problem - Given the following data, answer the questions that follow.

Income Statement For the Year Ended 12/31/Year 2

Net Sales $1,500,000

Cost of goods sold (800,000)

Cash operating expenses (400,000)

Depreciation and amortization expense (100,000)

Gain on sale of equipment 60,000

Net income $260,000

Additional Information:

1. Increase in accounts receivable during Year 2 $40,000.

2. Decrease in inventory during Year 2 30,000.

3. Increase in accounts payable 44,000.

4. Sale of old equipment for cash 130,000.

5. Dividends declared - $90,000; Dividends paid 80,000.

6. New building acquired by issuing common shares 84,000.

7. Sold bonds for cash - proceeds of 150,000.

Required -

1) What was cash from customers during year 2?

2) What was cash paid to suppliers during year 2?

3) What was net cash inflow from operating activities during year 2?

4) What was net cash inflow (outflow) from investing activities during year 2?

5) What was net cash inflow (outflow) from financing activities during year 2?