Answer:
Gram Co.
Statement of cash flows
For the month ended May 31, 202x
Cash flows from operating activities:
Net income $5,590
Adjustments to net income:
Increase in accounts payable <u> $80</u>
Net cash flow from operating activities $5,670
Cash flows from investing activities:
Purchase of office equipment <u>($2,020)</u>
net cash flow from investing activities ($2,020)
Cash flows from financing activities:
Issuance of common stock $43,500
Paid dividends <u> ($1,600)</u>
Net cash flow from financing activities $41,900
Net cash increase during May $45,550
Initial balance of cash account <u> $0</u>
Ending balance of cash account (5/31) $45,550
Explanation:
operating cash flows:
rent expense ($2,400)
cleaning services ($780)
service revenue $5,300 + $2,400 + $3,200
assistant's salary ($790)
accounts payable increased by $80
assistant's salary ($790)
utilities bill ($550)
total revenue = $10,900
total expenses = $5,310
net income = $5,590
investing cash flows:
purchased equipment for $1,940
purchased office equipment $80
financing cash flows:
Issuance of common stock $43,500
paid dividends ($1,600)
