Answer full question. ## Statement of Cash Flows PreparationThis guide demonstrates how to prepare a statement of cash flows for a company using a detailed template for educational purposes. The example referenced is for Pacilio Security Services, Inc. for the year ended December 31, Year 5.### Statement of Cash Flows Template OverviewThe statement of cash flows includes three main sections: operating activities, investing activities, and financing activities. Each section reflects the cash inflows and outflows related to the company's daily operations, investments, and financial activities for the year. **Template Layout:**1. **Header** - Company Name: Pacilio Security Services, Inc. - Statement Type: Statement of Cash Flows - Period: For the Year Ended December 31, Year 52. **Sections** - **Cash flows from operating activities:** - This section tracks cash transactions related to the core business operations. - Subcategories typically listed here include receipts from customers, payments to suppliers and employees, interest payments, and tax payments. - **Net cash flow from operating activities:** The sum of cash inflow and outflow within operating activities. - **Cash flows from investing activities:** - This section includes cash transactions for the acquisition and disposal of long-term assets and investments. - Subcategories might include the purchase or sale of equipment, property acquisitions, or proceeds from the sale of investments. - **Net cash flow from investing activities:** The total cash flow resulting from all investing activities. - **Cash flows from financing activities:** - This section tracks cash transactions related to the company's capital structure. - Typical subcategories include issuing or repurchasing stock, borrowing and repaying loans, and dividend payments. - **Net cash flow from financing activities:** The net amount of cash used or generated from financing activities. - **Ending cash balance:** - This is the final line showing the company's cash position at the end of the period after combining the results of the three sections.### Example Data TranscriptionBelow is the filled template of Pacilio Security Services, Inc. for reference:```Pacilio Security Services, Inc.Statement of Cash FlowsFor the Year Ended December 31, Year 5Cash flows from operating activities:(Various subcategories from operating activities, e.g., receipts, payments)Net cash flow from operating activities:.......................................................................................... $0Cash flows **Trial Balance and Transactions of Pacilio Security Services**Pacilio Security Services, Inc., as of January 1, Year 5, has the following normal balances:- Cash: $62,860- Accounts Receivable: $20,560- Supplies: $150- Prepaid Rent: $2,000- Merchandise Inventory (9 @ $240): $2,160- Land: $4,000- Accounts Payable: $980- Salaries Payable: $1,500- Common Stock: $50,000- Retained Earnings: $39,190**Transactions During Year 5:**1. Paid the salaries payable from Year 4.2. On January 15, purchased 20 standard alarm systems for cash at a cost of $250 each.3. On February 1, paid the accounts payable of $980, but not within the discount period (the company uses the gross method).4. On March 1, leased a business van. Paid $4,800 for one year's lease in advance.5. Paid $7,200 on May 1 for one year’s rent on the office in advance.6. Purchased with cash $500 of supplies to be used over the next several months by the business.7. Purchased with cash another 25 alarm systems on August 1 for resale at a cost of $260 each.8. On September 5, purchased on account 30 standard alarm systems at a cost of $265.9. Installed 60 standard alarm systems for $33,000. Sales of $22,000 were on account, while $11,000 were cash sales.10. Recorded the cost of goods sold related to the sale from Event 9 using the perpetual FIFO method.11. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Recorded the reversal of revenue.12. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Recorded the reversal of cost.13. Paid installers and other employees a total of $21,000 cash for salaries.14. Sold $45,000 of monitoring services during the year. The services are billed to the customers each month.15. Sold and installed alarm monitoring service for $1,200

Cash Flow statement : It is the statement which shows cash inflows and outflows of an enterprises…

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: Cash $62,860 20,500 150 Accounts receivable Supplies Prepaid rent Merchandise inventory (9 @ $240) 2,000 2,160 4,000 980 Land Accounts payable Salaries payable Common stock Retained earnings 1,500 50,000 39,190 During Year 5, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 4. 2. On January 15, purchased 20 standard alarm systems for cash at a cost of $250 each. 3. On February 1, paid the accounts payable of $980, but not within the discount period. (The company uses tbe gross method.) 4. On March 1, leased a business van. Paid $4,800 for one year's lease in advance. 5. Paid $7,200 on May 1 for one year's rent on the office in advance. 6. Purchased with cash $500 of supplies to be used over the next several months by the business. 7. Purchased with cash another 25 alarm systems on August 1 for resale at a cost of $260 each. 8. On September 5, purchased on account 30 standard alarm systems at a cost of $265. 9. Installed 60 standard alarm systems for $33,000. Sales of $22,000 were on account, while $11,000 were cash sales. O. Record the cost of goods sold related to the sale from Event 9 using the perpetual FIFO method. 11. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of revenue. 12. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of cost. 13. Paid installers and other employees a total of $21,000 cash for salaries. 14. Sold $45,000 of monitoring services during the year. The services are billed to the customers each month. 15. Sold an additional monitoring service for $1,200 for one year's service. The customer paid the full amount of $1,200 on October 1. 16. Collected $74,000 of accounts receivable during the year. 17. Paid an additional $6,000 to settle some of the accounts payable. 18. Paid $3,500 of advertising expense during the year. 19. Paid $2,320 of utilities expense for the year. 0. Paid a dividend of $15,000 to the shareholders.