Chapter 1, Problem 1.38E

Preparing the statement of cash flows

Bean Town Food Equipment Company had the following transactions for the month ending February 29, 2016. Bean Town’s cash balance on February 1, 2016, was $16,400.

Feb. 1	Common stock was issued to stockholders for $7,500 cash.
7	Purchased equipment for $2,500 on account.
14	Paid $18,000 cash for land.
17	Paid cash expenses: employees’ salaries, $1,500; office rent, $1,800; utilities, $500.
23	Paid cash dividends of $3,000.
26	Earned service revenue for the month, $8,000, receiving cash.

Prepare the statement of cash flows of Bean Town Food Equipment Company for the month ended February 29, 2016.