Question
Geller Florist Inc. had the following transactions during 2015:
Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.
Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips.
Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck.
What is the net impact of these transactions on Geller's Cash from Financing Activities during 2015?
$250,000
$350,000
$300,000
$100,000
$150,000
1 point
4.
Question 4
Stewart E
Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.
Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips.
Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck.
What is the net impact of these transactions on Geller's Cash from Financing Activities during 2015?
$250,000
$350,000
$300,000
$100,000
$150,000
1 point
4.
Question 4
Stewart E
Answers
GPT-4o mini
To determine the net impact of Geller Florist Inc.'s transactions on Cash from Financing Activities during 2015, we need to only consider the transactions that fall under financing activities:
1. **Raised $100,000 from selling new shares of stock to investors**: This cash inflow represents financing activity and contributes **+100,000** to Cash from Financing Activities.
2. **Mortgage obtained for the warehouse**: The $150,000 mortgage also represents a cash inflow and counts as financing, contributing **+150,000** to Cash from Financing Activities.
The other transactions, such as the purchase of the warehouse and land, and the sale of the old building, do not fall under financing activities; they are investing activities.
Now, we summarize the relevant cash flows from financing activities:
- Cash inflow from stock issuance: **$100,000**
- Cash inflow from mortgage: **$150,000**
Total cash from financing activities:
\[
100,000 + 150,000 = 250,000
\]
Therefore, the net impact of these transactions on Geller's Cash from Financing Activities during 2015 is **$250,000**.
The answer is **$250,000**.
1. **Raised $100,000 from selling new shares of stock to investors**: This cash inflow represents financing activity and contributes **+100,000** to Cash from Financing Activities.
2. **Mortgage obtained for the warehouse**: The $150,000 mortgage also represents a cash inflow and counts as financing, contributing **+150,000** to Cash from Financing Activities.
The other transactions, such as the purchase of the warehouse and land, and the sale of the old building, do not fall under financing activities; they are investing activities.
Now, we summarize the relevant cash flows from financing activities:
- Cash inflow from stock issuance: **$100,000**
- Cash inflow from mortgage: **$150,000**
Total cash from financing activities:
\[
100,000 + 150,000 = 250,000
\]
Therefore, the net impact of these transactions on Geller's Cash from Financing Activities during 2015 is **$250,000**.
The answer is **$250,000**.