Question

A summary of cash flows for Adventure travale service for the year ended april 30,2019 follows,

Particulars	Amount$
Cash receipts:
Cash received from customers	20,80,000
Cash received from additional investment of owner	60,000
Cash payments:
Cash paid for operating expenses	17,06,000
Cash paid for land	4,00,000
Cash paid to owner for personal use	40,000

The cash balance as of may 1,2018 was $2,03,000

Prepare a statement of cash flows for adventure Travel Service for the year ended April 30,2019

 

Answer 1

This statement details all cash inflow and outflow transactions, and the net outcome of these transactions is the cash balance at the conclusion of the reporting period. The changes in cash balance resulting from operating, investing, and financing operations are included in the statement of cash flows.

 

Adventure Travel Service

Statement of Cash flows

For the year ended April 30,2019

Particulars	Amount$	Amount$
Cash flows from operating activities :
Cash receipts from customers	20,08,000
Less : Cash payments for operating expenses	17,06,000
Net cash flows used for operating activities		3,74,000
Cash flows from investing activities :
Cash payments for purchase of land		(4,00,000)
Cash flows from financing activities :
Cash receipt of owner's investment	60,000
Less : cash withdrawal by owner	40,000
Net cash flows from financing activities		20,000
Net decrease in cash during the year		(6,000)
Cash of may 1,2018		2,03,000
Cash of april 30,2019		$1,97,000

 

Therefore, the cash balance of Adventure Travel service as of April 30,2019 is $1,97,000