Question

During the month of October 2011, Miller Company had the following transactions:

1.    Revenues of $10,000 were earned and received in cash.

2.    Bank loans of $2,000 were paid off.

3.    Equipment of $2,500 was purchased for cash.

4.    Expenses of $7,200 were paid.

5.    Additional shares of capital stock were sold for $6,000 cash.

Assuming that the cash balance at the beginning of the month was $7,450, prepare a statement of cash flows that displays operating, investing, and financing activities and that​

Answer 1

Answer:

During the month of October 2011, Miller Company had the following transactions:

1.    Revenues of $10,000 were earned and received in cash.

2.    Bank loans of $2,000 were paid off.

3.    Equipment of $2,500 was purchased for cash.

4.    Expenses of $7,200 were paid.

5.    Additional shares of capital stock were sold for $6,000 cash.

Assuming that the cash balance at the beginning of the month was $7,450, prepare a statement of cash flows that displays operating, investing, and financing activities and that

Answer 2

Concept:

A cash flow statement is a basic financial statement that provides valuable information about a company's cash inflows or  receipts  and  cash outflows or cash payments over a specific period of time. The cash flow statement also provides information on net cash fluctuations that occur during the period, categorizing activities into three categories: operating activities, investing activities, and cash from financing activities.

Given:

In October 2011, Miller Company is known to have made the following transactions:   $\ 10,000$ revenue generated and received in cash,  $\ 2,000$ bank loans repaid, $\ 2,500$ equipment purchased in cash, $\ 7,200$ spending paid, other common stock  sold in cash I did.  $\ 6,000$ cash.

Seek:

You need to create a cash flow statement  that shows your operating, investing, and financial activities.

Solution:

The cash flow statement  is shown below.

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