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On January 1, 2013, Palmetto, a fast-food company, had a balance in its Cash account of $32,000. During the 2013 accounting period, the company had (1) net cash inflow from operating activities of $15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of $4,500.
Required:
a. Prepare a statement of cash flows. b. Provide a reasonable explanation as to what may have caused the net cash inflow from operating activities. c. Provide a reasonable explanation as to what may have caused the net cash outflow from investing activities. d. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities.
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