Homework SourseA summary of cash flows for Ousel Travel Service for the yea
A summary of cash flows for Ousel Travel Service for the year ended November 30, 2016, follows. The cash balance as of December 1, 2015, was $203,000.
Prepare a statement of cash flows for Ousel Travel Service for the year ended November 30, 2016. Refer to the cash receipts and cash payments information given in the instructions and to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) and the word “Deduct” will automatically appear if they are required. Enter amounts that represent cash outflows as negative numbers using a minus sign.
repare a statement of cash flows for Ousel Travel Service for the year ended November 30, 2016. Refer to the cash receipts and cash payments information given in the instructions and to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) and the word “Deduct” will automatically appear if they are required. Enter amounts that represent cash outflows as negative numbers using a minus sign.
Score: 70/98
Ousel Travel Service
Statement of Cash Flows
| Cash Flows | |
|---|---|
| Cash receipts: | |
| Cash received from customers | $1,465,000 |
| Cash received from additional investment of owner | 50,000 |
| Cash payments: | |
| Cash paid for operating expenses | 1,230,000 |
| Cash paid for land | 150,000 |
| Cash paid to owner for personal use | 30,000 |
Solution
Ousel Travel Service
Statement of Cash Flows
For the Year Ended November 30, 2016 (Amount in $)
Working notes:-
1) The cash received from customers and cash paid for operating expenses will be shown as a cash flows from operating activities and cash paid for land is an investing activity, therefore will be shown as a cash flow from investing activity.
2) The cash received from additional investment of owner will result in increase in owner\'s capital and will be shown as a cash flow from financing activities. Similarly, cash paid to owner for personal use will result in decrease in owner\'s capital and will also shown as a cash flow from financing activities.
| Cash flows from operating activities | |
| Cash received from customers | 1,465,000 |
| Cash paid for operating expenses | -1,230,000 |
| Net cash flows from operating activities (A) | 235,000 |
| Cash flows from investing activities | |
| Cash paid for land | -150,000 |
| Net cash flows used for investing activities (B) | -150,000 |
| Cash flows from financing activities | |
| Cash received from additional investment of owner | 50,000 |
| Cash paid to owner for personal use | -30,000 |
| Net cash flows from financing activities (C) | 20,000 |
| Net increase in cash during year (A+B+C) | 105,000 |
| Add: Cash as of December 1, 2015 | 203,000 |
| Cash as of November 30, 2016 | 308,000 |
