Statement of Cash Flows

Anonymous
timer Asked: Nov 9th, 2018
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Question Description

Prepare a statement of cash flows for a hypothetical company using appropriate financial data and methods.

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Using the transactions listed below for Audrey's Ice Cream Parlor, prepare a statement of cash flows for the month of April 2012. Classify the transactions into appropriate categories (operating activities, investing activities, and financing activities). To complete this assessment, use the Statement of Cash Flows Template to complete and submit the following information: • a. Received cash of $40,000 total ($10,000 each) from four investors. Each investor received 100 shares of common stock. This took place on April 1. • b. Paid three months' rent for the store on April 1 at $2,000 per month (recorded as prepaid expenses). • c. Purchased ice cream and cones for $6,000 on account payable, due in 60 days. This took place on April 2. • d. Purchased supplies for $1,000 cash on April 2. • e. Received a two-year $11,000 loan at the bank. The note payable is dated April 2. • f. Used the money from (e) to purchase a computer for $3,000 (for record keeping and inventory tracking) and to purchase $8,000 of used furniture and fixtures for the store. • g. Placed a grand opening advertisement in the local paper for $600 cash. • h. Made sales in the first half of the month totaling $5,000: $4,250 was in cash and the rest was on accounts receivable. The cost of the ice cream sold was $2,000. • i. Made a $600 payment on accounts payable on April 18. • j. Incurred and paid employee wages of $2000 for the month of April. • k. Collected accounts receivable of $700 from customers. • l. Made a repair to one of the refrigerators for $300. • m. Made sales in the last half of the month for $6,000, all for cash. The cost of the ice cream sold was $2,400. Template for statement of cash flows for Audrey's Ice Cream Parlor for the month ended April 30, 2012. Classify the transactions into appropriate categories (operating activities, investing activities, and financing activities). See the transactions provided in the assessment. Learner: Audrey's Ice Cream Parlor Statement of Cash Flows For the Month Ended April 30, 2012 Cash from Operations: Collections from Customers (Items K, H, and M) Cash paid for Inventory (Item I) Cash paid for Rent (Item B) Cash paid for Supplies (Item D) Cash paid for Advertising (Item G) Cash paid for Wages (Item J) Cash paid for Repairs (Item L) Cash provided by Operations $ - $ - $ - $ - Investing Cash Flow: Cash from borrowing from bank (Item E) Cash paid for Equipment and Furniture (Item F) Net Investing Cash Flow Financing Cash Flow: Issuance of Stock (Item A) Overall Increase in Cash Add: Cash at April 1 Yields: Cash at April 30 End of Worksheet ...
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Tutor Answer

FrankRose23
School: Rice University

See the solution to this question attached below. You can go through it
and incase you may need any editing or more explanation you can get back
to me.

Template for statement of cash flows for Audrey's Ice Cream Parlor for the month ended April 30...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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