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Question 26-32

Question 26-32

FINANCIAL ACCOUNTING
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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Question 26-32
Use the following to answer questions 26 – 32 Below is a summary of all transactions of KEV Consulting for the month of October. Cash transactions Cash collections from: Sale of unused office furniture $45,000 Borrowing from bank 125,000 Customers Cash payments for: Employee salaries 600.000 275,000 Dividends to stockholders 25,000 Advertising expense 250,000 Utilities expense 8.000 Purchased an office equipment| 155,000 office supplies 2,000 Noncash Transactions Issue note payable for equipment S750,000 Services to customers on account 125,000 Purchase supplies on account 300 Prepare a statement of cash flows for the month of October, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of October is $50,000. 26. $ What is the amount of cash inflows from operating activities? $ from operating activities? 27. What is the amount of cash outflows 28. $ Operating Activities (if cash used, use "-“)? What is the Net Cash Flows from
Transcribed Image Text:Use the following to answer questions 26 – 32 Below is a summary of all transactions of KEV Consulting for the month of October. Cash transactions Cash collections from: Sale of unused office furniture $45,000 Borrowing from bank 125,000 Customers Cash payments for: Employee salaries 600.000 275,000 Dividends to stockholders 25,000 Advertising expense 250,000 Utilities expense 8.000 Purchased an office equipment| 155,000 office supplies 2,000 Noncash Transactions Issue note payable for equipment S750,000 Services to customers on account 125,000 Purchase supplies on account 300 Prepare a statement of cash flows for the month of October, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of October is $50,000. 26. $ What is the amount of cash inflows from operating activities? $ from operating activities? 27. What is the amount of cash outflows 28. $ Operating Activities (if cash used, use "-“)? What is the Net Cash Flows from
Prepare a statement of cash flows for the month of October, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of October is $50,000. 26. $ What is the amount of cash inflows from operating activities? 27. $ What is the amount of cash outflows from operating activities? 28. $ What is the Net Cash Flows from Operating Activities (if cash used, use "-“)? 29. $ What is the Net Cash Flows from Investing Activities (if cash used, use "-")? 30. $ What is the Net Cash Flows from Financing Activities (if cash used, use "-")? 31. $ How much did cash change (if decrease, use “-“) 32. $ What is the ending cash balance for the company?
Transcribed Image Text:Prepare a statement of cash flows for the month of October, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of October is $50,000. 26. $ What is the amount of cash inflows from operating activities? 27. $ What is the amount of cash outflows from operating activities? 28. $ What is the Net Cash Flows from Operating Activities (if cash used, use "-“)? 29. $ What is the Net Cash Flows from Investing Activities (if cash used, use "-")? 30. $ What is the Net Cash Flows from Financing Activities (if cash used, use "-")? 31. $ How much did cash change (if decrease, use “-“) 32. $ What is the ending cash balance for the company?
Expert Solution
Step 1

Cash flow is the net amount of cash or money  being transferred in or out of business

  • Cash received represents = cash inflow 
  • Cash spent/expense represents = cash outflow 

Cash flow is categorized into three categories 

  • Operating 
  • Investing 
  • Financing  
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