Classifying events on the statement of cash flows
The following transactions pertain to the operations of Fleming Company for 2012.
1.Acquired $40,000 cash from the issue of common stock.
2.Performed services for $12,000 cash.
3.Provided $55,000 of services on account.
4.Received $36,000 cash in advance for services to be performed over the next two years.
5.Incurred $30,000 of other operating expenses on account.
6.Collected $45,000 cash from accounts receivable.
7.Paid $4,000 cash for rent expense.
8.Paid $12,000 for one year’s prepaid insurance.
9.Paid a $5,000 cash dividend to the stockholders.
10. Paid $22,000 cash on accounts payable.
Required
a.Classify the cash flows from these transactions as operating activities (OA), investing activities (IA), or financing activities (FA). Use NA for transactions that do not affect the statement of cash flows.
b. Prepare a statement of cash flows. (There is no beginning cash balance.)
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