Cash receipts:
Cash received from customers $1,500,000
Cash received from additional investment of owner 75,000
Cash payments:
Cash paid for operating expenses 1,215,000
Cash paid for land 240,000
Cash paid to owner for personal use 66,000
The cash balance as of May 1, 2013, was $220,000.
Prepare a statement of cash flows for Sunset Travel Service for the year ended April 30, 2014.
Answer:
SUNSET TRAVEL SERVICEStatement of Cash Flows
For the Year Ended April 30, 2014
Cash flows from operating activities:
Cash received from customers $ 1,500,000
Deduct cash payments for operating expenses (1,215,000)
Net cash flows from operating activities $ 285,000
Cash flows used for investing activities:
Cash payments for purchase of land (240,000)
Cash flows from financing activities:
Cash received from owner as investment $ 75,000
Deduct cash withdrawals by owner (66,000)
Net cash flows from financing activities 9,000
Net increase in cash during year $ 54,000
Cash as of May 1, 2013 220,000
Cash as of April 30, 2014 $ 274,000