Question

Required information [The following information applies to the questions displayed below.] Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Borrowed $40,000 cash from National Bank. 3. Earned cash revenues of $48,000 for performing services. 4. Paid cash expenses of $25,000. 5. Paid a $1,000 cash dividend to the stockholders. 6. Acquired an additional $20,000 cash from the issue of common stock. 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $53,000 cash to purchase land. 9. Determined that the market value of the land is $75,000. e. Determine the net cash flows from operating activities, investing activities, and financing activities that Maben would report on the Year 1 statement of cash flows. (Enter cash outflows as negative amounts.) & Answer is complete but not entirely correct. $ 23,000 Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities $ 79,000 X (53,000)

Answer 1

$ ANSWER: Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities 23,000 (53,000) 79,000 WORKING NOTE: Transactions info $ 30,000 Financing Activity $ 40,000 Financing Activity $ 48,000 Operating Activity ($ 25,000) Operating Activity ($1,000) Financing Activity $ 20,000 Financing Activity ($ 10,000) Financing Activity ($ 53,000) Investing Activity Nil Net cash flows from operating activities = $ 48,000 - $ 25,000 = $ 23,000 net cash inflow Net cash flows from investing activities = ($ 53,000) net cash outflow Net cash flows from financing activities = $ 30,000 + $ 40,000 + $ 20,000 - $1,000 - $10,000 = $ 79,000 net cash inflow