7.Hum-Drum Company had the following transactions during May:
1.Collected $47,000 cash from customers.
2.Purchased $40,000 of inventory on credit.
3.Purchased equipment for $10,000 cash.
4.Issued $50,000 of common stock.
5.Made a $2,500 payment on a loan obtained last year.
6.Payments to suppliers of merchandise totaled $28,500.
7.Paid $11,500 for expenses.
Required:
Determine net cash flow from (a) operating activities, (b) financing activities, and (c) investing activities for May.
8.Levitz Corporation had the following transactions during December:
1.Collected $210,000 cash from customers.
2.Purchased $180,000 of inventory on credit.
3.Purchased equipment for $50,000 cash.
4.Issued $300,000 of common stock.
5.Made a $16,000 payment on a loan obtained last year.
6.Payments to suppliers of merchandise totaled $130,000.
7.Paid $60,000 for expenses.
Required:
Determine net cash flow from (a) operating activities, (b) financing activities, and (c) investing activities for December.