Question

Below is a summary of all transactions of KEV Consulting for the month of October. $40,000 150,000 777,000 Cash transactions Cash collections from: Sale of unused office furniture Borrowing from bank Customers Cash payments for: Employee salaries Dividends to stockholders Advertising expense Utilities expense Purchased office equipment Office supplies Noncash Transactions Issue note payable for equipment Services to customers on account Purchase office equipment on account 555,000 75,000 135,000 10,000 75,000 2,000 $350,000 125,000 25,000 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 $55,000. 26. $ 27. $__ 29.$_ 30. $ 31. $__ 32. $_ What is the amount of cash inflows from operating activities? What is the amount of cash outflows from operating activities? What is the Net Cash Flows from Operating Activities (if cash used, use "-")? What is the Net Cash Flows from Investing Activities (if cash used, use "-")? What is the Net Cash Flows from Financing Activities (if cash used, use "-")? _How much did cash change (if decrease, use "-") What is the ending cash balance for the company?

Answer 1

KEV Consulting
Statement of Cash Flows
For the Month October
I. Cash flow from Operating Activities
Cash Receipts
Cash collection from customers		777,000
Cash payments
Cash payment for salaries	-555,000
Cash payment for Advertisement expense	-135,000
Cash payment for Utilities expense	-10,000
Cash payment for Office supplies	-2,000
Total Cash payments		-702,000
Net cash provided by Operating Activities		75,000
II.  Cash flow from Investing Activities
Sale of unused office furniture	40,000
Purchase of office equipment	-75,000
Net cash used in Investing Activities		-35,000
III. Cash flow from Financing Activities
Borrowing from bank	150,000
Dividends to stockholders	-75,000
Net cash provided by Financing Activities		75,000
Net increase in Cash and Cash Equivalents(I +II +III)		115,000
Add: Cash in the beginning of the period		55,000
Cash at the end of the period		170,000

26.

The amount of cash inflows from operating activities is $777,000.

27.

The amount of cash outflows from operating activities is $702,000.

28.

The net cash flows from operating activities is $75,000.

29.

The net cash flows from investing activities is -$35,000.

30.

The net cash flows from financing activities is $75,000

31.

Increase in cash $115,000

32.

The ending cash balance for the company is $170,000.

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