A summary of cash flows for Adventure Travel Service for the year ended April 30, 2019, follows:
Cash receipts:
Cash received from customers $2,080,000
Cash received from additional investment of owner 60,000
Cash payments:
Cash paid for operating expenses 1,706,000
Cash paid for land 400,000
Cash paid to owner for personal use 40,000
The cash balance as of May 1, 2018, was $203,000.
Prepare a statement of cash flows for Adventure Travel Service for the year ended April 30, 2019.
Answer:
ADVENTURE TRAVEL SERVICE
Statement of Cash Flows
For the Year Ended April 30, 2019
Cash flows from operating activities: Cash receipts from customers $ 2,080,000 Cash payments for operating expenses (1,706,000) Net cash flow from operating activities$ 374,000 Cash flows used for investing activities: Cash payment for purchase of land(400,000) Cash flows from financing activities: Cash receipt from owner as investment $ 60,000 Cash withdrawals by owner(40,000) Net cash flow from financing activities20,000 Net decrease in cash during year$ (6,000) Cash as of May 1, 2018203,000 Cash as of April 30, 2019$ 197,000