Cash receipts:
Cash received from customers $734,000
Cash received from issuing common stock 36,000
Cash payments:
Cash paid for operating expenses 745,600
Cash paid for land 50,000
Cash paid as dividends 18,000
The cash balance as of September 1, 2015, was $89,000.
Prepare a statement of cash flows for Sentinel Travel Service for the year ended August 31, 2016.
Answer:
SENTINEL TRAVEL SERVICE
Statement of Cash Flows
For the Year Ended August 31, 2016
Cash flows from operating activities:
Cash received from customers $ 734,000
Deduct cash payments for operating expenses (745,600)
Net cash flows used for operating activities $(11,600)
Cash flows used for investing activities:
Cash payments for purchase of land (50,000)
Cash flows from financing activities:
Cash received from issuing common stock $ 36,000
Deduct cash dividends (18,000)
Net cash flows from financing activities 18,000
Net decrease in cash during year $(43,600)
Cash as of September 1, 2015 89,000
Cash as of August 31, 2016 $ 45,400
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