Question

Required information [The following information applies to the questions displayed below.) Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations. May 1 G. Gram invested $42,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,200 cash for May's rent. 3 The company purchased $1,920 of office equipment on credit. 5 The company paid $740 cash for this month's cleaning services. 8 The company provided consulting services for a client and immediately collected $5,700 cash. 12 The company provided $2,800 of consulting services for a client on credit 15 The company paid $730 cash for an assistant's salary for the first half of this month. 20 The company received $2,800 cash payment for the services provided on May 12. 22 The company provided $3,000 of consulting services on credit. 25 The company received $3,000 cash payment for the services provided on May 22. 26 The company paid $1,920 cash for the office equipment purchased on May 3. 27 The company purchased $85 of office equipment on credit. 28 The company paid $730 cash for an assistant's salary for the second half of this month. 30 The company paid $300 cash for this month's telephone bill. 30 The company paid $280 cash for this month's utilities. 31 The company paid $1,500 cash in dividends to the owner (sole shareholder).

Answer 1

Answer:

THE GRAM Co.
Statement of Cash Flows
For month ended May 31
Cash flow from operating activities:
Cash received from clients [2,800 + 3,000]	$                   5,800.00
Cash received from services	$                   5,700.00
Cash paid for cleaning expenses	$                    (740.00)
Cash paid for rent	$                 (2,200.00)
Cash paid for salaries (730 * 2)	$                 (1,460.00)
Cash paid for telephone bills	$                    (300.00)
Cash paid for utilities	$                    (280.00)
Cash flows from Operating Activities	$                   6,520.00
Cash Flows from Investing Activities
Cash paid for purchase of office equipment	$                 (1,920.00)
Cash flow from Investing activities	$                 (1,920.00)
Cash Flows from Financing activities
Cash received from issuance of Common Stock	$                 42,500.00
Cash paid for dividends	$                 (1,500.00)
Cash flows from Financing activities	$                 41,000.00
Increase (Decrease) in Cash (6,520 - 1,920 + 41,000)	$                 45,600.00
Cash at beginning	$                       -
Cash at end	$                 45,600.00