Cash receipts: Cash received from customers $637,500 Cash received from additional investment of owner 62,500 Cash payments: Cash paid for operating expenses 475,000 Cash paid for land 90,000 Cash paid to owner for personal use 17,500
The cash balance as of June 1, 2013, was $58,000.
Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2014.
Answer:
ETHOS CONSULTING GROUP Statement of Cash Flows For the Year Ended May 31, 2014 Cash flows from operating activities: Cash received from customers $637,500 Deduct cash payments for operating expenses 475,000 Net cash flows from operating activities $162,500 Cash flows used for investing activities: Cash payments for purchase of land (90,000) Cash flows from financing activities: Cash received from owner as investment $ 62,500 Deduct cash withdrawals by owner 17,500 Net cash flows from financing activities 45,000 Net decrease in cash during year $117,500 Cash as of June 1, 2013 58,000 Cash as of May 31, 2014 $175,500