Dive In Company was started several years ago by two diving instructors. The com
ID: 2437283 • Letter: D
Question
Dive In Company was started several years ago by two diving instructors. The company’s comparative balance sheets and income statement are presented below.
Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable Prepaid Expenses $ 5,720 $6,610 1,400 140 2,800 280 $ 8,800 $8,150 Common Stock Retained Earnings Salaries and Wages Payable 1,250 $2,900 1,900 3,350 3,000 4,550 $ 8,800 $8,150 Income Statement Service Revenue Salaries and Wages Expense Other Operating Expenses $53,750 48,000 4,550 Net Income $ 1,200 Additional Data: a. Prepaid Expenses relate to rent paid in advance b. Other Operating Expenses were paid in cash. c. An owner contributed capital by paying $1,100 cash in exchange for the company's stock.Explanation / Answer
Statement of cash flow :
Cash flow from operating activities Cash received from customer 52350 Cash paid for salary and wages -49650 Cash paid for rent advance -140 Cash paid for other expense -4550 Net cash flow from operating activities -1990 Cash flow from investing activities Net cash flow from investing activities 0 Cash flow from financing activities Issue common Stock 1100 Net cash flow from financing activities 1100 Net cash flow -890 Cash at the beginning of the year 6610 Cash at the end of the year 5720