Respuesta :
Answer:
Explanation:
a. The categorization is shown below:
Performed services for $14,200 cash = operating activities (OA)
Purchased land for $7,200 cash. investing activities (IA)
Hired an accountant to keep the books. = not applicable (NA)
Received $32,000 cash from the issue of common stock. = financing activities (FA)
Borrowed $8,400 cash from State Bank. = financing activities (FA)
Paid $4,200 cash for salary expense. = operating activities (OA)
Sold land for $8,400 cash. investing activities (IA)
Paid $3,200 cash on the loan from State Bank. = financing activities (FA)
Paid $4,400 cash for utilities expense. = operating activities (OA)
Paid a cash dividend of $1,200 to the stockholders.= financing activities (FA)
b. The preparation of the Cash Flows from three Activities is presented below:
Cash flow from Operating activities
Performed services for cash $14,200
Less: paid cash for salary expenses -$4,200
Less: paid cash for utilities expenses -$4,400
Net Cash flow provided by Operating activities $5,600
Cash flow from Investing activities
Purchase of land for cash - $7,200
Sale of land for cash $8,400
Net Cash flow provided by Investing activities $1,200
Cash flow from Financing activities
Cash receipt from the issuance of common stock $32,000
Cash borrowed from state bank $8,400
Les: cash paid on the loan from state bank -$4,400
Less: cash dividend paid -$1,200
Net Cash flow provided by Financing activities $34,800
Net Cash flow provided by Operating activities $5,600
Net Cash flow provided by Investing activities $1,200
Net Cash flow provided by Financing activities $34,800
Add: Beginning cash balance $9,200
Ending cash balance $50,800
