Question

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A summary of cash flows for Linda's Design Services for the year ended December 31 is shown below.

Cash receipts:
Cash received from customers	$84,560
Cash received from additional investment by owner	15,100
Cash payments:
Cash paid for expenses	$30,910
Cash paid for land	62,810
Cash paid for supplies	370
Drawing	6,730
Cash balance as of January 1	$5,000

Prepare a statement of cash flows for Linda's Design Services for the year ended December 31. Refer to 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. Enter amounts that represent cash outflows as negative numbers using a minus sign.

Linda’s Design Services

Statement of Cash Flows

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Answer 1

Linda’s Design Services
Statement of Cash Flows
Cash flows from operating activities
Cash received from customers	$   84,560
Cash paid for expenses	$ (30,910)
Cash paid for supplies	$       (370)
Net cash provided by operating activities		$   53,280
Cash flows from investing activities
Cash paid for land	$ (62,810)
Net cash used in investing activities		$ (62,810)
Cash flows from financing activities
Cash received from additional investment by owner	$   15,100
Drawing	$   (6,730)
Net cash provided by financing activities		$      8,370
Net decrease in cash and cash equivalents		$   (1,160)
Cash and cash equivalents at beginning of period		$      5,000
Cash and cash equivalents at end of period		$      3,840

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