Tommy began a business, and after collecting $5,600 from an equity investor and
ID: 2329291 • Letter: T
Question
Tommy began a business, and after collecting $5,600 from an equity investor and borrowing $4,700 from a bank, he purchased a piece of land for $7,400. During the year, he leased the land to Sheila and received $3,200 in cash. He paid $2,200 cash for expenses during the year and paid an $1,300 dividend to the equity investor. Prepare a statement of cash flows for the period. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Tommy's Business Statement of Cash Flows For the Year EndedExplanation / Answer
Answer
Statement of Cash Flows
Cash Flows from Operating Activities
Cash received as rent of Land
$ 3,200.00
Cash paid for expenses
$ (2,200.00)
Net Cash flows from Operating Activities - provided
$ 1,000.00
Cash flows from Investing Activities
Cash paid for Land purchased
$ (7,400.00)
Net Cash flows from Investing activities - used
$ (7,400.00)
Cash flows from Financing Activities
Cash received as Common Stock
$ 5,600.00
Cash from borrowing from Bank
$ 4,700.00
Cash paid for dividends
$ (1,300.00)
Net Cash flows from Financing activities - provided
$ 9,000.00
Net Increase in Cash
$ 2,600.00
Cash at the beginning
$ -
Cash at the end
$ 2,600.00
Statement of Cash Flows
Cash Flows from Operating Activities
Cash received as rent of Land
$ 3,200.00
Cash paid for expenses
$ (2,200.00)
Net Cash flows from Operating Activities - provided
$ 1,000.00
Cash flows from Investing Activities
Cash paid for Land purchased
$ (7,400.00)
Net Cash flows from Investing activities - used
$ (7,400.00)
Cash flows from Financing Activities
Cash received as Common Stock
$ 5,600.00
Cash from borrowing from Bank
$ 4,700.00
Cash paid for dividends
$ (1,300.00)
Net Cash flows from Financing activities - provided
$ 9,000.00
Net Increase in Cash
$ 2,600.00
Cash at the beginning
$ -
Cash at the end
$ 2,600.00