Question

7 Part 5 of 10 points Required Information [The following information applies to the questions displayed below] Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $29,000 cash from the issue of common stock 2. Borrowed $41,000 cash from National Bank 3. Earned cash revenues of $57,000 for performing services 4. Paid cash expenses of $49,500. 5. Pald a $1,900 cash dividend to the stockholders. 6. Acquired an additional $29,000 cash from the issue of common stock 7. Pald $10,000 cash to reduce the principal balance of the bank note. 3. Paid $52,000 cash to purchase land 9. Determined that the market value of the land is $73,000 Shipped eBook References e. Determine the net cash flows from operating activities, Investing activities, and financing activities that Maben would report on the Year 1 statement of cash flows. (Enter cash outflows as negative amounts.) Net cash flows from operating activities Not flows from investing activities Net cash flows from financing activities

Answer 1

	Operating activities	Investing activities	Financing activities
Issue of common stock	-	-	29,000
Borrowing from National Bank	-	-	41,000
Cash revenues	57,000	-	-
Cash expenses paid	(49,500)	-	-
Cash dividend paid	-	-	(1,900)
Additional issue of common stock	-	-	29,000
Principal repaid of bank note	-	-	(10,000)
Land purchased	-	(52,000)	-
Net cash flows	7,500	(52,000)	87,100

• Revaluation of land is a non-cash item and hence does not affect the cash flow statement.

Cash Flow from Operating Activities: Shows cash used in or generated from the business activities. E.g. Receipts from the sale of products or services; Interest payments; Payments to suppliers of goods; Salaries and wages paid to employees; Tax paid etc.

Cash Flow from Investing Activities: Shows cash used in or generated from the investment activities of the company. E.g. Proceeds from the sale of assets; Payment for acquisition of assets etc.

Cash Flow from Financing Activities: Shows cash generated from or used in financing activities. E.g. Proceeds from issue of stock; Dividend payments; Repayment of loans; Issue of bonds etc.