Question

Below is a summary of all transactions of Dreamworks Bedding Supplies for the month of August 2021.

Cash Transactions
Cash collections from:
Customers	$	84,900
Sale of unused land		14,800
Issuance of common stock		21,000
Interest earned on savings account		210
Cash payments for:
Employee salaries		(46,200	)
Delivery truck		(32,700	)
Advertising expense		(5,000	)
Office supplies		(2,900	)
Repayment of borrowing		(8,100	)
Bedding material		(16,300	)
Noncash Transactions
Sales to customers on account		11,400
Purchase of materials on account		7,500
Purchase equipment with promissory note to pay later		83,000

Prepare a statement of cash flows for the month of August, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of August is $7,400. (List cash outflows and decrease in cash as negative amounts.)

DREAMWORKS BEDDING SUPPLIES Statement of Cash Flows For the month ended August 31, 2021 Cash Flows from Operating Activities       Cash inflows: Cash outflows: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the month Cash at the end of the month

  

Answer 1

DREAMWORKS BEDDING SUPPLIES Statement of Cash Flows For the month ended August 31, 2021 Cash Flows from Operating Activities       Cash inflows: Cash collections from customers 84,900 Interest earned on savings account 210 Cash outflows: Employee salaries - 46,200 Advertising expense - 5,000 Office supplies - 2,900 Bedding material - 16,300 Net cash flows from operating activities 14,710 Cash Flows from Investing Activities Sale of unused land 14,800 Payment for Delivery truck - 32,700 Net cash used in investing activities - 17,900 Cash Flows from Financing Activities Repayment of borrowing - 8,100 Issuance of common stock 21,000 Net cash flows from financing activities 12,900 Net increase in cash 9,710 Cash at the beginning of the month 7,400 Cash at the end of the month 17,110