Use the following information to answer questions 47-49 The following informatio
ID: 2657068 • Letter: U
Question
Use the following information to answer questions 47-49 The following information is available for Bounty Bay Corporation for the year ended December 31, 2015: Collection of principal on long-term loan to a supplier Purchase of equipment for cash Proceeds from the sale of long-term investment at carrying amount Issue of common shares for cash Depreciation expense Payment of the principal of the long-term bank loan Payment of cash dividends Profit $25,000 12,000 28,000 23,500 19,000 33,000 14,250 51,750 35,000 Purchase of land by issuing mortgage payable In addition, the following information is available from the comparative statements of financial position for Bounty Bay Corporation at the end of 2015 and 2014:
Explanation / Answer
47. Calculation of net cash provided by Operating activities
Hence, correct option is (b) i.e. $62,650
48. Calculation of net cash provided by Investing activities
Hence, correct option is (a)
49. Cash of cash used by Financing activities
Hence, correct option is (a)
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Profit 51,750 Add: Depreciation 19,000 Add: Increase in accounts payables 2,750 Less: Decrease in salaries payable - 3,100 Increase in accounts receivables - 3,250 Increase in prepaid insurance - 4,500 Net cash provided by operating activities 62,650