Question 1.7: Statement of Cash Flows A summary of cash flows for Chickade......
Statement of Cash Flows
A summary of cash flows for Chickadee Travel Service for the year ended April 30, 2012, is shown below.
Cash receipts:
Cash received from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $251,000
Cash received from additional investment of owner . . . . . . . . . . . . . . . . . . . . . . 50,000
Cash payments:
Cash paid for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,000
Cash paid for land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Cash paid to owner for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
The cash balance as of May 1, 2011, was $72,050. Prepare a statement of cash flows for Chickadee Travel Service for the year ended April 30, 2012.
Chickadee Travel Service
Statement of Cash Flows
For the Year Ended April 30, 2012
Cash flows from operating activities:
Cash received from customers . . . . . . . . . . . . . . . . . . . . . . . . $251,000
Deduct cash payments for expenses . . . . . . . . . . . . . . . . . . \underline{210,000}
Net cash flows from operating activities . . . . . . . . . . . . . . . $ 41,000
Cash flows from investing activities:
Cash payments for purchase of land . . . . . . . . . . . . . . . . . . . (80,000)
Cash flows from financing activities:
Cash received from owner as investment. . . . . . . . . . . . . . $ 50,000
Deduct cash withdrawals by owner . . . . . . . . . . . . . . . . . . . . \underline{30,000}
Net cash flows from financing activities . . . . . . . . . . . . . . . \underline{20,000}
Net decrease in cash during year . . . . . . . . . . . . . . . . . . . . . . . $(19,000)
Cash as of May 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \underline{72,050}
Cash as of April 30, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \underline{\$ 53,050}