Eduardo Inc. was organized on July 1, 2009. A summary ofcash flows for July foll

Question

Eduardo Inc. was organized on July 1, 2009. A summary ofcash flows for July follows.

Cash receipts:

               Cash received fromcustomers                          $169,200

               Cash received for capitalstock                           648,000

               Cash received from notepayable                          72,000

Cash payments:

               Cash paid out forexpenses                                $ 60,120                                              

               Cash paid out for purchase ofequipment             540,000

               Cash paid asdividends                                           36,000

Prepare a statement of cash flow for the month ended July 31,2009.

Explanation / Answer

Statement of Cash flows for the month ended July 31, 2009 Cash flow from Operations Cash received from customers $ 169,200 Cash paid out forexpenses        (60,120) Cash flow fromOperations                         109,080 Cash flow from Investing Purchase ofequipment                              (540,000) Cash flow from Financing Cash from capitalstock         648,000 Cash received from Notes    72,000 Cash paid as dividends (36,000) Cash flow fromFinancing                           684,000                    Net change incash                                    253,080

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.