Thursday, February 28, 2019

PE 1-7A Statement of cash flows

A summary of cash flows for Ousel Travel Service for the year ended November 30, 2016, follows:

Cash receipts:
Cash received from customers $1,465,000
Cash received from issuing common stock 50,000

Cash payments:
Cash paid for operating expenses 1,230,000
Cash paid for land 150,000
Cash paid as dividends30,000
The cash balance as of December 1, 2015, was $203,000.

Prepare a statement of cash flows for Ousel Travel Service for the year ended 
November 30, 2016.


Answer:
OUSEL TRAVEL SERVICE 
Statement of Cash Flows 
For the Year Ended November 30, 2016 
Cash flows from operating activities: 
Cash received from customers $ 1,465,000 
Deduct cash payments for operating expenses (1,230,000) 
Net cash flows from operating activities $ 235,000 
Cash flows used for investing activities: 
Cash payments for purchase of land (150,000) 
Cash flows from financing activities: 
Cash received from issuing common stock $ 50,000 
Deduct cash dividends (30,000) 
Net cash flows from financing activities 20,000 
Net increase in cash during year $ 105,000 
Cash as of December 1, 2015 203,000 
Cash as of November 30, 2016 $ 308,000 

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