Statement of cash flows. The following is a list of account balances for Hover H

Question

Statement of cash flows. The following is a list of account balances for Hover Hospital on June 30, 20X1. Prepare a statement of cash flows as of June 30, 20X1.

Givens

Transfer to parent corporation

$40,000

Proceeds from sale of fixed equipment

$2,290,000

Principal payment on bonds payable

$780,000

Purchase of fixed equipment

$5,300,000

Beginning of cash balance

$6,500,000

Cash from operating activities

$3,900,000

Principal payment on notes payable

$6,500

explan step by step plz

Givens

Transfer to parent corporation

$40,000

Proceeds from sale of fixed equipment

$2,290,000

Principal payment on bonds payable

$780,000

Purchase of fixed equipment

$5,300,000

Beginning of cash balance

$6,500,000

Cash from operating activities

$3,900,000

Principal payment on notes payable

$6,500

Explanation / Answer

Statement of cash flows for Hover Hospital as of June 30, 20X1. 1.Cash from operating activities $3,900,000 (Given)(cash generated) 2.Cash from investing activities: Purchase of fixed equipment(cash used) -5300000 Proceeds from sale of fixed equipment(cash generated) 2290000 -3010000 (Net cash used) 3.Cash from financing activities Principal payment on bonds payable(cash used) -780000 Principal payment on notes payable (cash used) -6500 Trasfer to parent corporation (cash used) -40000 -826500 (Net cash used) Net increase in cash $63,500 (1+2+3) Add:Beginning of cash balance 6500000 (Given) Cash at the end of the period $6,563,500

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