Keyser Beverage Company reported the following items in the most recent year. Net income $44,500
Dividends paid 6,220
Increase in accounts receivable 11, 290
Increase in accounts payable 7,890
Purchase of equipment (capital
expenditure) 9,400
Depreciation expense 6,890
Issue of notes payable 24,960
Compute net cash provided by operating activities, the net change in cash during the year. (Show amounts that decrease cash flow with either a - sign e. g. -15,000 or in parenthesis e. g. (15,000).)

Answer and Explanation:

The computation of net cash provided by operating activities is shown below:-

                       Keyser Beverage Company

                         Statement of Cash Flows

Particulars                                                                 Amount

Cash Flow from Operating Activities:  

Net Income                                                            $44,500

Adjustments to reconcile net income

Depreciation                                   $6,890.00  

Increase in Accounts receivable-$11,290  

Increase in Accounts payable        7,890             $3,490

Net Cash Flow From Operating Activities a      $47,990

Cash Flow from Investing Activities

Purchase of Equipment                  -$9,400

Net Cash Flow From Investing Activities b          -$9,400

Cash Flow from Financing Activities

Issue of note payable                $24,960  

Dividend paid                              -$6,220

Net Cash Flow From Financing Activities c       $18,740

Net Change in Cash (a + b + c)                            $57,330

Free Cash flow = Net cash provided by operating activities - Purchase of equipment - Dividend paid

= $47,990 - $9,400 - $6,220

= $32,370

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: