Question

Statement of Cash Flows Looney Inc. was organized on July 1, Year 1. A summary of cash flows for July follows Cash receipts: Cash received from customers Cash received from issuance of common stock Cash received from note payable $342,200 59,000 35,400 Cash payments: Cash paid out for expenses Cash paid out for purchase of equipment Cash paid as dividends 194,700 88,500 11,800 Prepare a statement of cash flows for the month ended July 31, Year 1. Use the minus sign to indicate cash out flows, decreases in cash, or cash payments. If your answer is zero enter "O"

Answer 1

Payments and outflow of cash is required to be written in negative numbers using minus sign. Do the answer as stated below

Looney Inc.
Statement of Cash flows
For the month ended June 31, Year 1
Cash from operating activities
Cash received from customers	$    3,42,200.00
Cash paid for expenses	$ (1,94,700.00)
Net cash flows from operating activities		$ 1,47,500.00
Cash flows from investing activities
Cash paid for purchase of Equipment		$   (88,500.00)
Cash flows from Financing activities
Cash received from issuance of common stock	$       59,000.00
Cash received from notes payables	$       35,400.00
Cash dividend paid to stockholders	$     (11,800.00)
Net cash flows from Financing activities		$      82,600.00
Net increase in cash		$ 1,41,600.00
July 1 cash balance		$      0.00
July 31 cash balance		$ 1,41,600.00