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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615

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BuyFindarrow_forward

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem
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Statement of cash flows

A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2016, follows:

Cash receipts:

Cash received from customers

$637,500
Cash received from additional investment of owner 62,500

Cash payments:

Cash paid for operating expenses

475,000
Cash paid for land 90,000
Cash paid to owner for personal use 17,500

The cash balance as of June 1, 2015, was $58,000.

Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2016.

To determine

Statement of cash flows:

This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

To prepare: Statement of cash flows of EC Group for the year ended May 31, 2016.

Explanation

Prepare statement of cash flows of EC Group for the year ended May 31, 2016.

...
EC Group
Statement of Cash Flows
For the Year Ended May 31, 2016
Cash flows from operating activities:
  Cash receipts from customers $637,500
  Deduct: cash payments for operating expenses (-)  $475,000
      Net cash flows used for operating activities $162,500
Cash flows used for investing activities:

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