Mark\'s Consulting experienced the following transactions for 2018, its first ye
ID: 2804231 • Letter: M
Question
Mark's Consulting experienced the following transactions for 2018, its first year of operations, and 2019. Assume that all transactions involve the receipt or payment of cash. b-4. Prepare a statement of cash flows for each year accounting period. Transactions for 2018 1. Acquired $20,000 by issuing common stock 2. Received $35,000 cash for providing services to customers 3. Borrowed $25,000 cash from creditors 4. Paid expenses amounting to $22,000 5. Purchased land for $30,000 cash. Complete this question by entering your answers in the tabs below Stmt CF 2018 Stmt CF 2019 Transactions for 2019 Prepare a statement of cash flows for the vear 2018. (Amounts to be deducted should be indicated with a minus sign MARK'S CONSULTING Statement of Cash Flows For the Year Ended December 31, 2018 Beginning account balances for 2019 are Cash Land Notes payable Common stock Retained earnings $28,000 30,000 25,000 20,000 13,000 Cash flows from operating activities 1. Acquired an additional $24,000 from the issue of common stock. Net cash flow from operating activities 2. Received $95,000 for providing services. 3. Paid $15,000 to creditors to reduce loan. 4. Paid expenses amounting to $71,500 5. Paid a $3,000 dividend to the stockholders. 6. Determined that the market value of the land is $47,000 Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities Ending cash balanceExplanation / Answer
Cash flow statement for 2018
Cash flow statement for 2019
Particulars Amount Cash flow from operating activity PAT(35000-22000) 13000 Changes in working capital-Creidtors increases-cash increases 25000 Net Cash flow from operating activity(A) 38000 Cash flow from Financing activity Issue of common stock 20000 Net Cash flow from Financing activity(B) 20000 Cash flow from Investing activity Purchase of land -30000 Net Cash flow from Investing activity -30000 Cash at beginning of year 0 Cash during the year(A+B+C) 28000 Cash at end of year 28000