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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