Answer & Explanation:
<u>Operating Activities</u>
services collected 25,000
salaries paid (14,000)
utilities paid (2,800)
cash generated from operating activities 8,200
<u />
<u>Investing activities</u>
proceeds from land 9,000
purchase of land (6,000)
cash generated from investing activities 3,000
<u />
<u>Financing Activities</u>
issuance of stocks 50,000
bank loan 5,000
payment on loan (10,000)
dividends paid (5,000)
cash generated from financing activities 40,000
Total cash generated for the year ended December 31th, 2018 51,200
beginning balance 9,200
ending balance 60,400
Notes: Activities related to the daily operation wil lbe operating activities.
The transaction involving long-term assets will be investing activities
The stocks, dividends and loan, loan payment are financing activities for the company.
