Question

1 JRC Normal Alcode Descripción Ааас Normal Puesto Below is a summary of all transactions of KEV Consulting for the month of October $15,000 100,000 850,000 Cash transactions Cash collections from: Sale of unused office furniture Borrowing from bank customers Cash payments for: Employee salaries Dividends to stockholders Advertising expense Utilities expense Purchased office equipment Office supplies Noncash Transactions Issue note payable for equipment Services to customers on account Purchase office equipment on account 500,000 100,000 225,000 18,000 80,000 2,500 $300,000 45,000 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 $25,000. 26.15 2211$ 28.15 What is the amount of cash inflows from operating activities? What is the amount of cash outflows from operating activities? What is the Net Cash Flows from Operating Activities (if cash used, use? What is the Net Cash Flows from Investing Activities if cash used, use? What is the Net Cash Flows from Financing Activities of cash used, use? How much did cash change it decrease, use 29.3 30. 31118 32 3 What is the ending cash balance for the company? Foco

Answer 1

26
Calculate amount of cash inflow from operating activities
Cash collected from customer	$850,000
Cash inflow	$850,000
27
Calculate amount of cash outflow from operating activities
Employee salaries	$500,000
Advertising expense	$225,000
Utilities expense	$18,000
Office supplies	$2,500
Cash outflow from operating activities	$745,500
28
Calculate net cash flow from operating activities
Cash inflow from operating activities	$850,000
Cash outflow from operating activities	-$745,500
Cash flow provided from operating activities	$104,500
29
Calculate net cash flow from investing activities
Sale of unused office furniture	$15,000
Purchase of office equipment	-$80,000
Net cash flow used from investing activities	-$65,000
30
Calculate net cash flow from financing activities
Borrowings from bank	100000
Dividend to stockholder's	-100000
Net cash flow from financing activities	0
31
Change in cash balance	104500-65000
Change in cash balance	$39,500
'32
Ending cash balance	39500+25000
Ending cash balance	$64,500