Final answer:
The cash flow statement for Waldorf Company for October Year 1 indicates a net increase in cash of $64,000 due to operating activities providing $22,500 and financing activities providing $41,500 in cash.
Step-by-step explanation:
Cash Flow Statement for Waldorf Company for October Year 1
To create a cash flow statement for the Waldorf Company for October Year 1, we need to categorize all transactions into operating, investing, and financing activities. In this case, we have the following:
Operating Activities
Revenues earned in cash: $100,500
Expenses paid in cash: -$78,000
Net cash provided by operating activities: $22,500
Financing Activities
Cash received from bank loans: $60,000
Dividends paid in cash: -$18,500
Net cash provided by (used in) financing activities: $41,500
Net Increase in Cash for October Year 1
Cash from operating activities and financing activities are added to find the net increase in cash for the month of October:
Net increase in cash: $22,500 (operating) + $41,500 (financing) = $64,000
The cash flow statement for Waldorf Company for the month of October Year 1 reveals a net increase in cash of $64,000. This increase is a result of cash inflows from operating activities and financing activities.