Answer:
operating activities
services collected 8,500
account collected 3,900
wages for the perid (2.500)
purchase in cash
supplies (3,300)
advertisement (910)
payment to suppliers (900)
<u>Cash generated from operating activites: 4,790</u>
<u></u>
investing activities
purchase of suite (45,000)
office equiment purchase (5,000)
<u>cash used for investing activites 50,000</u>
<u></u>
financing activities
Lopez cash contributiion 61,000
Lopez withdrawals (1,400)
<u>cash generated from financing activites 59,600</u>
<u></u>
cash generated for the period 14,390
beginning of the period 0
Ending Cash 14,390
Explanation:
We have to associate each transaction with a cash flow activity.
The first step is checkthe cash involve, we will ignore anythign that is not cash.
then
(A) the contribution finance the business so financing
(B) this suite will be used for several period. It will be the base of operation from the business, is an investment
(c) the equipment will be used for several periods, it is an investment like the suite
(d) we record only for the cash used
(e) paid for an operational cost
(f) no cahs involve
(g) collected from business activities
(h) withdraw from the owner, a (des)financing
(i) receive cash from their activities, operating
(j) payment for equipment, this cash is invest in the equipment
(K) paid for wages, that is an operational cost, without secreaty the firm won't operate
