Answer to Question #216120 in Accounting for zuby

Question

Maria Sanchez, an accountant by trade, moonlights as a personal trainer. Maria is curious about her cash inflows and outflows from her personal work for the month of February. Using the following information, prepare a statement of cash flows for Maria.

Cash for Supplies Inventory

$500

Cash for Advertising

$400

Cash Paid for Equipment

$900

Cash Received from Bank Loan

$1,000

Cash Paid for Insurance

$700

Cash Received from Customers

$2,200

Cash Paid for Taxes

$400

Cash Balance, 2/1

$500

Answer 1

Maria Sanchez

Statement of Cash Flows

For the Month of February

Cashflows from Operating Activities

Cash from Customers 2,200

Cash for Advertising (400)

Cash for Supplies Inventory (500)

Cash paid for Insurance (700)

Cash paid for Taxes (400)

Net cash provided (used) by operating activities $ 200

Cash flows from Investing Activities

Cash paid for equipment (900)

Net cash provided (used) by Investing activities (900)

Cash flows from Financing Activities

Cash from Bank Loan 1,000

Net cash provided (used) by Financing activities 1,000

Net Increase (Decrease) in Cash $ 300

Cash and Cash Equivalents balance as at 1st February 500

Cash and Cash Equivalents balance as at End of February $ 800