Question

Problem 1-35 Recording events in a horizontal statements model LO 1-3, 1-4, 1-5, 1-6, 1-7, 1-8, 1-9, 1-10 The following information applies to the questions displayed below Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: 1. Acquired $38,000 cash from the issue of common stock. 2. Borrowed $32,000 cash from National Bank 3. Earned cash revenues of $56,000 for performing services 4. Paid cash expenses of $49,000. 5. Paid a $1,800 cash dividend to the stockholders. 6. Acquired an additional $28,000 cash from the issue of common stock 7. Paid $8,000 cash to reduce the principal balance of the bank note. 8. Paid $61,000 cash to purchase land 9. Determined that the market value of the land is $85,000. Problem 1-35 Part e e. Determine the net cash flows from operating activities, investing activities, and financing activities that Maben would repon 2018 statement of cash flows. (Enter cash outflows as negative amounts.) Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities

Answer 1

Statement of cash flows

I. Cash flows from operating activities
Cash revenue	56,000
Cash expenses	- 49,000
Net cash flows from operating activities		7,000
II. Cash flows from investing activities
Purchase of land	- 61,000
Net cash used in investing activities		- 61,000
III. Cash flows from financing activities
Issue of common stock	66,000
Increase in notes payable	32,000
Cash dividend paid	- 1,800
Repayment of notes payable	- 8,000
Net cash flows from financing activities		88,200
Net increase in cash (I + II + III)		34,200

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