Question

A summary of cash flows for Adventure Travel Service for the year ended April 30, 2019, follows:

Answer 1

Answer:

Adventure Travel Service

Statement of cash flows for the year ended April 30, 2019

Cash flow from Operating Activities

Cash receipts from customers                                 $2,080,000

Cash payments for operating expenses                 ($1,706,000)

Net Cash from Operating Activities                            $374,000

Cash flow from Investing Activities

Purchase of land                                                        ($400,000)

Net Cash from Investing Activities                            ($400,000)

Cash flow from Financing Activities

Cash receipt from owner as investment                      $60,000

Drawings                                                                       ($40,000)

Net Cash from Financing Activities                              $20,000

Movement in Cash and Cash Equivalents                   ($6,000)

Beginning Cash and Cash Equivalents                      $203,000

Ending Cash and Cash Equivalents                            $197,000

Explanation:

The Statement of Cash flows shows the results of cash from the following sources : Cashflow from Operating Activities, Cashflow from Investing Activities and Cashflow from Financing Activities.