An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year.Revenues:Services provided to customersInvestment by shareholdersLoan from bankExpenses:Payments to long-term creditorsExpenses required to provide services to customersPurchase of landNet lossPRESTWICK COMPANYStatement of Cash FlowsFor the Month Ended August 31, Current YearCash flows from operating activities:PRESTWICK COMPANYAUGUST 31, CURRENT YEARCash flows from investing activities:Cash flows from financing activities:Based on the information prepare a statement of cash flows in a form consistent with generally accepted accounting principles. Youmay assume all transactions were in cash and that the beginning cash balance was $9,600. (List any deduction in cash and cashoutflows as negative amounts.)Cash balance, August 1, Current YearCash balance, August 31, Current Year$ 15,0004,60014,000$ 13,0008,00018,000$ 33,60039,000$ 5,400

Statement of cash flows is one of the financial statement being prepared in business. It shows all…

An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year. Revenues: Services provided to customers Investment by shareholders Loan from bank Expenses: PRESTWICK COMPANY AUGUST 31, CURRENT YEAR Payments to long-term creditors Expenses required to provide services to customers Purchase of land Net loss $ 15,000 4,600 14,000 $ 13,000 8,000 18,000 $ 33,600 39,000 $ 5,400 Based on the information prepare a statement of cash flows in a form consistent with generally accepted accounting principles. You may assume all transactions were in cash and that the beginning cash balance was $9,600. (List any deduction in cash and cash outflows as negative amounts.)

An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year. Revenues: Services provided to customers Investment by shareholders Loan from bank Expenses: PRESTWICK COMPANY AUGUST 31, CURRENT YEAR Payments to long-term creditors Expenses required to provide services to customers Purchase of land Net loss $ 15,000 4,600 14,000 $ 13,000 8,000 18,000 $ 33,600 39,000 $ 5,400 Based on the information prepare a statement of cash flows in a form consistent with generally accepted accounting principles. You may assume all transactions were in cash and that the beginning cash balance was $9,600. (List any deduction in cash and cash outflows as negative amounts.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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