This preview shows page 1. Sign up to view the full content.
Unformatted text preview: occurred but not yet be funded. In Thai’s case,
notice that $22,500 of the revenues have not yet been collected, as evidenced by the increase in
accounts receivable. Conversely, $1,500 of the rent cost has not yet been paid, as evidenced by the
rent payable liability.
c) A business will generate or expend cash from investing activities (like buying and selling property,
investment securities, and so forth). A business will also have financing activities that can be a
source or use of cash (examples include issuing stock, paying dividends, and borrowing/repaying
d) At this point in their studies, most students will be challenged to prepare the following statement
of cash flows! The student worksheet includes substantial preformatting to aid the process. Be sure
to tell your students to not be discouraged by this complex problem - focus on the central theme
that this it is an important financial statement. The preparation and use is the subject of a complete
chapter much later in the book.
Statement of Cash Flows
For the Year Ending December 31, 20X1
Cash received from customers $ 82,500 Cash paid for wages (45,000) Cash paid for rent (16,500) Cash provided by operations $ 21,000 Investing activities
Purchase of equipment - (75,000) Financing activities
Issue stock $ Proceeds of loan 15,000
45,000 Increase in cash 60,000
$ Cash, January 1 6,000
- Cash, December 31 $ 54 6,000...
View Full Document
This homework help was uploaded on 02/26/2014 for the course ACCOUNTING PARCOR taught by Professor Proftamaray during the Spring '14 term at University of the East, Manila.
- Spring '14