Answer full question. **Pacilio Security Services, Inc.****Statement of Cash Flows***For the Year Ended December 31, Year 3*---**Cash flows from operating activities:**- **Cash payment for expenses**: $765- **Cash receipts from customers**: - **Cash payment for expenses**: **Net cash flow from operating activities**: $(765)---**Cash flows from investing activities:**- (No data provided)**Net cash flow from investing activities**: ---**Cash flows from financing activities:**- (No data provided)**Net cash flow from financing activities**: $0---**Ending cash balance**: $0---*Notes*: 1. The net cash flow from operating activities shows a negative amount of $765, indicating that the company spent more on operating activities than it earned during the year.2. There were no cash flows from investing or financing activities reported during the year.*Instructions*: 1. This statement is a financial document that summarizes the cash flows of Pacilio Security Services, Inc. for the specified fiscal year.2. Individual amounts deducted should be indicated with a minus sign as shown in the statement above. # Pacilio Security Services, Inc. - Financial Analysis## Trial Balance as of January 1, Year 3The following trial balance represents the financial position of Pacilio Security Services, Inc. as of January 1, Year 3:1. **Cash**: $8,9002. **Accounts Receivable**: $1,5503. **Supplies**: $654. **Prepaid Rent**: $8805. **Land**: $4,0006. **Accounts Payable**: $1,0507. **Unearned Revenue**: $2008. **Salaries Payable**: $1,2009. **Notes Payable**: $2,00010. **Common Stock**: $8,00011. **Retained Earnings**: $2,815### Transactions During Year 3Pacilio Security Services experienced the following transactions throughout Year 3:1. Paid the salaries payable from Year 2.2. Paid the balance of $2,000 on the debt owed to the Small Business Government Agency (interest-free loan).3. Performed $32,000 worth of security services for various local events during the year: - $21,000 on account - $11,000 paid in cash4. On May 1, paid $3,000 for 12 months’ rent in advance.5. Purchased $700 worth of supplies.6. Paid salaries expense for the year: $9,000.7. Incurred other operating expenses on account: $4,200.8. On October 1, a customer paid $1,200 for services to be provided over the next 12 months.9. Collected $19,000 of accounts receivable during the year.10. Paid $5,950 on accounts payable.11. Paid $1,800 for advertising expenses for the year.12. Paid $4,650 cash dividend to shareholders.13. Market value of land was determined to be $5,500 as of December 31, Year 3.### AdjustmentsAt the end of Year 3, the following adjustments were made:1. There was $120 worth of supplies on hand.2. Recognized earned revenue from Year 2 and transaction No. 8.3. Recognized the expired rent.4.

A cash flow statement is a part of a financial statement that tells about the flow of cash during a…

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances: Cash $৪,980 1,500 65 Accounts Receivable Supplies Prepaid Rent Land Accounts Payable Unearned Revenue Salaries Payable Notes Payable Common Stock Retained Earnings 800 4,000 1,050 200 1,200 2,000 8,000 2,815 During Year 3, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 2. 2. Paid the balance of $2,000 on the debt owed to the Small Business Government Agency. The loan is interest-free. 3. Performed $32,000 of security services for numerous local events during the year; $21.000 was on account and $11,000 was for cash. 4. On May 1. paid $3,000 for 12 months' rent in advance. 5. Purchased supplies on account for $700. 6. Paid salaries expense for the year of $9,000. 7. Incurred other operating expenses on account, $4,20o. 8. On October 1, Year 3, a customer paid $1,200 for services to be provided over the next 12 months. 9. Collected $19,000 of accounts receivable during the year. 10. Paid $5,950 on accounts payable. 11. Paid $1,800 of advertising expenses for the year. 12. Paid a cash dividend to the shareholders of $4,650. 13. The market value of the land was determined to be $5,500 at December 31, Year 3. Adjustments 14. There was $120 of supplies on hand at the end of the year. 15. Recognized the expired rent. 16. Recognized the earned revenue from Year 2 and transaction no. 8. 17. Accrued salaries were $1,000 at December 31, Year 3.

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.20MCE