Question

Thomason Financial has the following cash transactions for the year. Assume cash at the beginning of the period is $6,500. Prepare a statement of cash flows. (Amounts to be deducted and cash outflows should be indicated with minus sign.)

Answer 1

Explanation:

THOMASON FINANCIAL

Statement of cash flows

for the year ended

Cash flow from operating activities  

Cash infolws  

Cash received for sale of serivces to customers $    43,000  

Cash outflows  

Cash paid to building maintenance $    (3,900)  

Cash paid for advertisments $    (6,800)  

Cash paid to workers $ (16,000)  

Net cash flow from operating activities  $    16,300

Cash flow from investing activities  

Cash paid to parchase office equipment $ (35,000)  

Cash received from sale of land $       4,300  

Net cash flow from investing activities  $ (30,700)

Cash flow from financing activities  

Cash received from issuance of common stock $    24,000  

Cash paid for dividends to stockholders $    (1,600)  

Cash received from borrowings $    15,100  

Net cash flow from financing activities  $    37,500

Net Increase in cash  $    23,100

Cash at the beginning of the year  $       7,100

Cash at the end of the year  $    30,200