Question

B F Retained Earnings $300 D $300 A/P OWNERS EQUITY Capital $2,000 $300 R/E 7600 Maria Sanchez, an accountant by trade, moonlights as a personal trainer. Maria is curious about her cash inflows and outflows from her personal work for the month of February. Using the following information, prepare a statement of cash flows for Maria, Cash for Supplies Inventory $500 cash for SI (5500) Cash for Advertising $400 cash for Advertising S400) Cash Paid for Equipment $900 Equipment (5900) ($1,800) Cash Received from Bank Loan $1,000 bank loan $1,000 (S800) Cash Paid for Insurance $700 cash pd for insuran ($700) ($1,500) Cash Received from Customers $2,200 cash received custo $2,200 $700 Cash Paid for Taxes $400 cash pd for taxes (5400) $300 Cash Balance, 2/1 $500 total $500 Document To Photos DL WOME

Answer 1

Answer

	Maria Sanchez
	Statement of Cash Flows
	for the February Month
	Cash Flow from operation
	Add:
	Cash Received from Customer	$ 2,200
	Less :
	Inventory Purches	$     500
	Advertisement	$     400
	Insurance exp	$     700
	Taxes	$     400
	Net cash flow from Operating Activities	$     200
	Cash Flow from Investing Activity
	Less :
	Equipment Purchased	$     900
	Net cash flow from Investing Activities	$   (900)
	Cash Flow from Financing Activity
	Add :
	Bank Loan Taken	$ 1,000
	Net cash flow from Financing Activities	$ 1,000
	Net Cash flow during the Year	$     300
	Opening CASH & CASH EQUIVALENT	$     200	B/F
	Closing CASH & CASH EQUIVALENT	$     500