EX 1-24 Statement of cash flows

A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2016, follows:

Cash receipts:

Cash received from customers $637,500

Cash received from issuing common stock 62,500

Cash payments:

Cash paid for operating expenses 475,000

Cash paid for land 90,000

Cash paid for dividends 17,500

The cash balance as of June 1, 2015, was $58,000.

Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2016.

Answer:

ETHOS CONSULTING GROUP 

Statement of Cash Flows For 

the Year Ended May 31, 2016 

Cash flows from operating activities: 

Cash received from customers $637,500 

Deduct cash payments for operating expenses (475,000) 

Net cash flows from operating activities $162,500 

Cash flows used for investing activities: 

Cash payments for purchase of land (90,000) 

Cash flows from financing activities: 

Cash received from issuing common stock $ 62,500 

Deduct cash dividends (17,500) 

Net cash flows from financing activities 45,000 

Net decrease in cash during year $117,500 

Cash as of June 1, 2015 58,000 

Cash as of May 31, 2016 $175,500