A summary of cash flows for Sentinel Travel Service for the year ended August 31, 2019, follows:
Cash receipts:
Cash received from customers $734,000
Cash received from additional investment of owner 36,000
Cash payments:
Cash paid for operating expenses 745,600
Cash paid for land 50,000
Cash paid to owner for personal use 20,000
The cash balance as of September 1, 2019, was $89,000.
Prepare a statement of cash flows for Sentinel Travel Service for the year ended August 31, 2019.
Answer:
SENTINEL TRAVEL SERVICE
Statement of Cash Flows
For the Year Ended August 31, 2019
Cash flows from operating activities: Cash receipt from customers Cash payments for operating expenses Net cash flow used for operating activities Cash flows used for investing activities: Cash payment for purchase of land Cash flows from financing activities: Cash receipt from owner as investment Cash withdrawals by owner Net cash flow from financing activities Net decrease in cash during year Cash as of September 1, 2018 Cash as of August 31, 2019 (50,000) $ 734,000 (745,600)$(45,600) 16,000 $ 36,000 (20,000) SENTINEL TRAVEL SERVICE Statement of Cash Flows For the Year Ended August 31, 2019 $(11,600)$ 43,400