Question

Unideno Corporation was organized on January 1, 2017, with the investment of $225,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $201.000 in cash and signing a three-year promissory note for the balance. Unideno signed a five-year, S50,000 promissory note at a local bank during 2017 and received cash in the same amount. During its first year, Unideno collected $93,000 from its customers. It paid $60,600 for inventory, $22,400 in salaries and wages, and another $5,100 in taxes. Unideno paid $5,300 in cash dividends. Prepare a statement of cash flows for the year ended December 31, 2017.

Answer 1

Unideno Corporation Statement of Cash Flow For The Year Ended December 31, 2017
Cash flow from operating activities:
Cash collected from customers	$93,000
Cash paid for inventory	(60,600)
Cash paid for salaries and wages	(22,400)
Cash paid for taxes	(5,100)
Net cash flow from operating activities		$4,900
Cash flow from investing activities:
Cash paid for purchase of office building	(201,000)
Net cash flow from investing activities		(201,000)
Cash flow from financing activities:
Proceeds from notes payable	50,000
Proceeds from stockholders	225,000
Dividends paid	(5,300)
Net cash flow from financing activities		269,700
Net increase or (Decrease) in cash		73,600
Beginning cash balance		0
Ending cash balance		$73,600