v2.cengagenow.com and learning resource from Cengage Learning The data were take

Question

v2.cengagenow.com and learning resource from Cengage Learning The data were taken from Alvarado Compa eBook Show Me How Calculator A summary of cash flows for Sentinel Travel Service for the year ended August 31, 2019, follows: Cash receipts: Cash received from customers $734,000 Cash received from additional investment of owner 36,000 Cash payments: Cash paid for operating expenses Cash paid for land Cash paid to owner for personal use 745,600 50,000 20,000 The cash balance as of September 1, 2018, was $89,000. Prepare a statement of cash flows for Sentinel Travel Service for the year ended August 31, 2019. Use the minus s in cash. Sentinel Travel Service Statement of Cash Flows Cash flows from operating activities: Cash receipt from customers Cash payments for operating expenses Net cash flow used for operating activities 734,000 745,600 X 11,600x Cash flows used for investing activities: Cash payment for purchase of landY 50,000 X Cash flows from financing activities: receipt from owner as investment 36,000 Cash withdrawals by owner 18,000 X Net cash flow from financing activities 18,000 X Net decrease in cash during year Check My Work 2 more Check My Work unes remaining 2 more Check My Work uses remaining All work saved.

Explanation / Answer

Solution :- Statement of Cash Flows

Cash received from customers

(-) Cash paid for operating expenses

734000

745600

Additional investment of owner

Drawings (Cash withdrawal by owner)

  36000

(-) 20000

Net decrease in cash during the year (16000 - 11000 - 50000)

(+) Beginning cash balance as on September 1, 2018

(-) 45600

89000

Conclusion :- Ending cash balance as on August 31, 2019 = $ 43400.

Particulars Amount ($) A). Cash flow from operating activities

Cash received from customers

(-) Cash paid for operating expenses

734000

745600

Cash flow from operating activities (-) 11600 B). Cash flow from investing activities (Purchase of land) (-) 50000 C). Cash flow from financing activities

Additional investment of owner

Drawings (Cash withdrawal by owner)

  36000

(-) 20000

C). Cash flow from financing activities 16000

Net decrease in cash during the year (16000 - 11000 - 50000)

(+) Beginning cash balance as on September 1, 2018

(-) 45600

89000

Ending cash balance as on August 31, 2019   43400

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.