Answered: Dolores Lopez opened a new consulting…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

Preparing a Statement of Cash Flows

Dolores Lopez opened a new consulting business. The following transactions occurred during January of the current year.

Invested cash in the business, $10,000.
Paid office rent, $500.
Purchased office equipment. Paid $1,500 cash and agreed to pay the balance of $2,000 in four monthly installments.
Received cash for services rendered, $900.
Paid phone bill, $65.
Made payment on loan in transaction (c), $500.
Paid wages to part-time employee, $500.
Received cash for services rendered, $800.
Paid electricity bill, $85.
Withdrew cash for personal use, $100.
Paid wages to part-time employee, $500.

Required:

Prepare a statement of cash flows based on the transactions reported. Use a minus sign to indicate cash outflows, cash payments or decreases in cash.

Dolores Lopez, Consulting
Statement of Cash Flows
For Month Ended January 31, 20--

Cash flows from operating activities:
		$Cash paid for office equipment
	$- Select -
	- Select -
	- Select -
	- Select -
Total cash paid for operations		fill in the blank 11
Net cash provided by operating activities		$fill in the blank 12
Cash flows from investing activities:
	$- Select -
Net cash used for investing activities		fill in the blank 15
Cash flows from financing activities:
	$- Select -
	- Select -
	- Select -
Net cash provided by financing activities		fill in the blank 22
Net increase in cash		$fill in the blank 23