Question

A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2018, follows:

Cash receipts:
Cash received from customers	$647,500
Cash received from issuing common stock	63,500
Cash payments:
Cash paid for operating expenses	485,500
Cash paid for land	90,000
Cash paid for dividends	14,500

The cash balance as of June 1, 2017, was $57,000.

Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2018. Refer to the Instructions and 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 (:) will automatically appear if it is required. Enter amounts that represent cash outflows as negative numbers using a minus sign.

Answer 1

Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2018.

Cash flow from operating activities
Cash received from customers	647500
Cash paid for operating expenses	-485500
Net cash flow from operating activities	162000
Cash flow from investing activities
Cash paid for land	-90000
Net cash used in investing activities	-90000
Cash flow from financing activities
Cash received from issuing common stock	63500
Cash paid for dividends	-14500
Net cash flow from financing activities	49000
Net Cash flow	121000
Beginning cash	57000
Ending cash	178000