Question

After its first month of operations, the following amounts were taken from the accounting records of Big Mountain Realty Inc. as of June 30, 20Y9. Cash $ 43,000 Notes payable $50,000 Common stock 75,000 Rent expense 8,000 Dividends 2,000 Retained earnings 0 Interest expense 300 Salaries expense 50,000 Land 100,000 Sales commissions 90,000 Miscellaneous expense 1,700 Utilities expense 10,000 Prepare a statement of cash flows for the month ending June 30, 20Y9. Use the minus sign to indicate cash out flows, decreases in cash, or cash payments. If your answer is zero enter "0". Big Mountain Realty Inc. Statement of Cash Flows For the Month Ending June 30, 20Y9 Cash flows from operating activities: Cash receipts from operating activities $ Cash payments for operating activities Net cash flows from operating activities $ Cash flows from investing activities: Cash payments for land Cash flows from financing activities: Cash receipts from issuing capital stock $ Cash receipts from issuing notes payable Cash payments for dividends Net cash flows from financing activities Net increase in cash during June $ Cash as of June 1, 20Y9 Cash as of June 30, 20Y9 $

Answer 1

Answer

--Requirement: Statement of Cash FLows, as asked

Cash flows from Operating activities:
Cash receipts from operating activities	$90,000
Cash payments for operating activities	($70,000)
Net cash flows from operating activities		$20,000
Cash flows from investing activities:
Cash payments for land		($100,000)
Cash flows from financing activities:
Cash receipts from issuing capital stock	$75,000
Cash receipts from issuing notes payable	$50,000
Cash payments for dividends	($2,000)
Net cash flows from financing activities		$123,000
Net increase in cash during June		$43,000
Cash as of June 1, 20Y9		$0
Cash as of June 30, 20Y9		$43,000