A summary of cash flows for Ousel Travel Service for the year ended November 30,

Question

A summary of cash flows for Ousel Travel Service for the year ended November 30, 2016, follows. The cash balance as of December 1, 2015, was $203,000.

Prepare a statement of cash flows for Ousel Travel Service for the year ended November 30, 2016. Refer to the cash receipts and cash payments information given in the instructions and to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) and the word “Deduct” will automatically appear if they are required. Enter amounts that represent cash outflows as negative numbers using a minus sign.

repare a statement of cash flows for Ousel Travel Service for the year ended November 30, 2016. Refer to the cash receipts and cash payments information given in the instructions and to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) and the word “Deduct” will automatically appear if they are required. Enter amounts that represent cash outflows as negative numbers using a minus sign.

Score: 70/98

Ousel Travel Service

Statement of Cash Flows

Cash Flows Cash receipts: Cash received from customers $1,465,000 Cash received from additional investment of owner 50,000 Cash payments: Cash paid for operating expenses 1,230,000 Cash paid for land 150,000 Cash paid to owner for personal use 30,000

Explanation / Answer

Ousel Travel Service

Statement of Cash Flows

For the Year Ended November 30, 2016 (Amount in $)

Working notes:-

1) The cash received from customers and cash paid for operating expenses will be shown as a cash flows from operating activities and cash paid for land is an investing activity, therefore will be shown as a cash flow from investing activity.

2) The cash received from additional investment of owner will result in increase in owner's capital and will be shown as a cash flow from financing activities. Similarly, cash paid to owner for personal use will result in decrease in owner's capital and will also shown as a cash flow from financing activities.

Cash flows from operating activities Cash received from customers 1,465,000 Cash paid for operating expenses -1,230,000 Net cash flows from operating activities (A) 235,000 Cash flows from investing activities Cash paid for land -150,000 Net cash flows used for investing activities (B) -150,000 Cash flows from financing activities Cash received from additional investment of owner 50,000 Cash paid to owner for personal use -30,000 Net cash flows from financing activities (C) 20,000 Net increase in cash during year (A+B+C) 105,000 Add: Cash as of December 1, 2015 203,000 Cash as of November 30, 2016 308,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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