Question

Below is a summary of all transactions of Dreamworks Bedding Supplies for the month of August 2021.

Prepare a statement of cash flows for the month of August, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of August is $7,500.

Below is a summary of all transactions of Dreamworks Bedding Supplies for the month of August 2021. $ 84,400 14,900 22.000 220 Cash Transactions Cash collections from: Customers Sale of unused land Issuance of common stock Interest earned on savings account Cash payments for: Employee salaries Delivery truck Advertising expense Office supplies Repayment of borrowing Bedding material Noncash Transactions Sales to customers on account Purchase of materials on account Purchase equipment with promissory note to pay later (46,300) (32,900) (5,100) (3,000) (8.200) (16,400) 11,500 7,600 84,000

Answer 1

DREAMWORKS BEDDING SUPPLIES

CASH FLOW STATEMENT FOR THE MONTH OF AUGUST 31,2021

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CASH FLOWS FROM OPERATING ACTIVITIES AMOUNT ($ )

INFLOWS:

Cash collected from customers 84,400

Interest received on savings account 220

Less .OUTFLOWS

Employee salaries -46,300

Advertising expenses - 5,100

Office Supplies - 3,000

Bedding material - 16,400

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NET CASH FLOWS FROM OPERATING ACTIVITIES 13,820 (A)

  

CASH FLOWS FROM INVESTING ACTIVITIES

  INFLOWS:

Sale of unused land 14,900

Less: OUTFLOWS

Cash paid to delivery truck - 32,900

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NET CASH FLOWS FROM INVESTING ACTIVTIES - 18,000 ( B )

CASH FLOWS FROM FINANCING ACTIVITIES

INFLOWS:

Issuance of common stock 22,000

Less: OUTFLOWS

Repayment of borrowing -8,200

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NET CASH FLOWS FROM FINANCING ACTIVITIES    13,800 ( C)

CASH AT THE BEGINNING 7500 (D)

  CASH AT THE END OF MONTH (A+B+C+D)     17,120

  (13,820-18,000+13,800+7500)