Answer:
Required 1
1. operating activities (OA) and investing activities (IA)
2. financing activities (FA)
3. financing activities (FA), operating activities (OA) and investing activities (IA)
4. financing activities (FA)
5. operating activities (OA)
6. financing activities (FA)
Required 2
<u>All-Star Automotive Company</u>
<u>Statement of cash flows for the year ended 2013</u>
Cash Flow from Operating Activities
Service Revenue $25,000
Salary Expense Paid - $14,000
Utilities Expenses - $2,800
Net Cash from Operating Activities $8,200
Cash Flow from Investing Activities
Land Purchase - $6,000
Proceeds from Sale of Land $9,000
Net Cash from Investing Activities $3,000
Cash Flow from Financing Activities
Issue of Common Stock $50,000
Loan Payable Acquired $5,000
Repayment of Loan - $2,000
Dividends Paid - $5,000
Net Cash from Financing Activities $48,000
Movement during the year $59,200
Cash and Cash Equivalents at the Beginning $9,000
Cash and Cash Equivalents at the End $68,200
Explanation:
Cash Flow from Operating Activities
This section shows the cash derived from daily operating activities of the business .
Cash Flow from Investing Activities
This section shows the cash derived from acquisition or sale of tangible and intangible assets of a long term.
Cash Flow from Financing Activities
This section shows the cash derived from the sources of finance and the repayments thereoff.
