A summary of cash flows for Macarthur Travel Service for the year ended May 31, 20Y6 is shown below. Cash receipts: Cash received from customers $295,300 Cash received from issuing common stock 26,600 Cash paymernts: Cash paid for operating expenses 245,100 Cash paid for land 51,700 Cash paid for dividends 4,800 The cash balance as of June 1, 20Y5, was $92,040. Prepare a statement of cash flows for Macarthur Travel Service for the year ended May 31, 20Y6. Use the minus sign to indicate cash outflows, cash payments and decreases in cash. Macarthur Travel Service Statement of Cash Flows For the Year Ended May 31, 20Y6 Cash flows from (used for) operating activities: Cash flows from (used for) investing activities: Cash flows from (used for) financing activities: %24 Cash balance, June 1, 20Y5 Cash balance, May 31. 20Y6
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![**Title: Cash Flow Statement for Macarthur Travel Service for the Year Ended May 31, 20Y6**
A summary of cash flows for Macarthur Travel Service for the year ended May 31, 20Y6 is shown below:
**Cash Receipts**:
- Cash received from customers: $295,300
- Cash received from issuing common stock: $26,600
**Cash Payments**:
- Cash paid for operating expenses: $245,100
- Cash paid for land: $51,700
- Cash paid for dividends: $4,800
**Statement of Cash Flows**:
For the Year Ended May 31, 20Y6
**Cash Flows from (used for) Operating Activities**:
[Details not provided in the image]
**Cash Flows from (used for) Investing Activities**:
[Details not provided in the image]
**Cash Flows from (used for) Financing Activities**:
[Details not provided in the image]
**Cash Balance**:
- Cash balance, June 1, 20Y5: $22,040
- Cash balance, May 31, 20Y6: [Details not provided in the image]
[Graphical Representation]
Apart from these summarized amounts, the image shows graphical icons possibly used to represent cash inflows and outflows visually. However, detailed numerical values or additional graphical elements are not provided or described.
**Instructions Note**:
"Prepare a statement of cash flows for Macarthur Travel Service for the year ended May 31, 20Y6. Use the minus sign to indicate cash outflows, cash payments and decreases in cash."
*Note: The provided image contains partial information. For a detailed cash flow statement, please refer to complete data or specific company records.*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60518c46-9a6d-435e-a91d-c372f77de598%2F52bc486d-fd07-4543-aabb-d684005c7369%2Fo1gho5_processed.jpeg&w=3840&q=75)
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