Homework Soursev2cengagenowcom and learning resource from Cengage Learning
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.
Solution
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 |
