Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
Answer:
a.
1. Operating Activities (OA)
2. Investing Activities (IA)
3. Not Applicable (NA)
4. Financing Activities (FA)
5. Financing Activities (FA)
6. Operating Activities (OA)
7.Investing Activities (IA)
8. Financing Activities (FA)
9. Operating Activities (OA)
10. Financing Activities (FA)
b. Ending Cash Balance $60,200
Explanation:
a. To Indicate how each of the events would be classified on the statement of cash flows as OPERATING ACTIVITIES (OA), INVESTING ACTIVITIES (IA), FINANCING ACTIVITIES (FA), or NOT APPLICABLE (NA).
1. Based on the information it these transaction will be classified as OPERATING ACTIVITIES (OA)
2. Based on the information it these transaction will be classified as INVESTING ACTIVITIES (IA)
3.Based on the information it these transaction will be classified as NOT APPLICABLE (NA)
4. Based on the information it these transaction will be classified as FINANCING ACTIVITIES (FA)
5. Based on the information it these transaction will be classified as FINANCING ACTIVITIES (FA)
6. Based on the information it these transaction will be classified as OPERATING ACTIVITIES (OA)
7. Based on the information it these transaction will be classified as INVESTING ACTIVITIES (IA)
8. Based on the information it these transaction will be classified as FINANCING ACTIVITIES (FA)
9. Based on the information it these transaction will be classified as OPERATING ACTIVITIES (OA)
10. Based on the information it these transaction will be classified as FINANCING ACTIVITIES (FA)
b. Preparation of a statement of cash flows for 2018. Assume All-Star Automotive Company had a beginning cash balance of $9,000 on January 1, 2018.
STATEMENT OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from revenue: $25,000
Less Cash payment for salary expense ($14,000)
Less Cash payments for utilities expense ($2,800)
Net cash flow from operating activities $8,200
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash from the sale of land $9,000
Less Cash paid to purchase land ($6,000)
Net cash flow from investing activities $3,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash receipts from stock issue $50,000
Add Cash receipts from loan $5,000
Less Cash payment on loan ($10,000)
Less Cash payments for dividends ($5,000)
Net cash flow from financing activities $40,000
Net increase in cash $51,200
($4,200+$3,000+$40,000)
Add Beginning cash balance $9,000
ENDING CASH BALANCE $60,200
Therefore the statement of cash flows for 2018 Ending Cash Balance is $60,200
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.