Question

Statement of Cash Flows A summary of cash flows for Hoist Travel Service for the year ended August 31, 20Y4, is shown below. Cash receipts: Cash received from customers $319,980 Cash received from additional investment of owner 22,400 Cash payments:

Cash paid for operating expenses 246,380
Cash paid for land 75,800
Cash paid to owner for personal use 4,500 T
he cash balance as of September 1, 20Y3, was $115,210.
Prepare a statement of cash flows for Hoist Travel Service for the year ended August 31, 20Y4. Use the minus sign to indicate cash outflows, cash payments and decreases in cash.

Answer 1

Answer and Explanation:

The preparation of the cash flows statement is presented below:

Cash flow from operating activities

Cash received from customers $319,980

Less: Cash paid for operating expenses -$246,380

Net cash flows from operating activities $73,600

Cash flow from investing activities

Cash paid for land -$75,800

Net Cash used from investing activities -$75,800

Cash flow from financing activities

Cash received from additional investment of owner $22,400

Less: Cash paid to owner for personal use -$4,500

Net cash flow from financing activities $17,900

Increase in cash ($73,600 - $75,800 + $17,900) $15,700

Add: Opening cash balance $115,210

Ending cash balance $130,910