Question

Use the following to answer questions 26 - 32 Below is a summary of all transactions of KEV Consulting for the month of October. Cash transactions Cash collection from sale of unused office furniture $40,000 Borrowing from bank 150.000 I Customers 777,000 Cash payments for Employee salaries $55.000 1 Dividends to stockholders 75.000 | Advertising expense 135,000 IlUtilities expense 10.000 Purchased office equipment 75,000 loffice supplies 2000 Noncash Transactions Issue note payable for equipment $350.000 Services to customers on account 125.000 Purchase office equipment on account 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. $ What is the amount of cash inflows from operating activities? 27. $ What is the amount of cash outflows from operating activities? 28. $ What is the Net Cash Flows from Operating Activities (if cash used, use "-")? 29. $ What is the Net Cash Flows from Investing Activities (if cash used, use "-")? 30. $ What is the Net Cash Flows from Financing Activities (if cash used, use "-")? 31. $ How much did cash change (if decrease, use "-") 32. $ What is the ending cash balance for the company?

Answer 1

777,000 KEV Consulting Statement of Cash Flow For the month ended October Cash flow from oprating activities: Collection from customers 777,000 Cash inflow from operating activities Salaries paid (555,000) Advertising expense paid (135,000) Utilities paid (10,000) Payment for supplies (2,000) Cash outflow from operating activities Net cash flow from operating activities (702,000) 75,000 40,000 40,000 Cash flow from investing activities: Sale of furniture Cash inflow from investing activities Purchase of equipment Cash outflow from investing activities Net cash flow from investing activities (75,000) (75,000) (35,000) 150,000 150,000 (75,000) Cash flow from financing activities: Borrowed from bank Cash inflow from financing activities Dividend paid Cash outflow from financing activities Net cash flow from financing activities Increase/Decrease in Cash Add: Beginning cash balance Ending cash balance (75,000) 75,000 115,000 55,000 (170,000)

Taken from the above cash flow statement 26 $ 27 $ 28 $ 29 $ 30$ 31 $ 32 $ 777,000 (702,000) 75,000 (35,000) 75,000 115,000 (170,000)