Cash flow statement is also known as statement of cash flows. It shows inflow and outflow of cash and it is divided into three categories, i.e., operating, investing and financing activities. The investing cash flow shows the expansion of company in terms of assets, i.e., sale and purchase of those assets which are not intended to be sold in near future. Whether camera Shop had grown in terms of assets in past two years.

Question

Create a statement of cash flow from the following transactions from the books of Arts and Styles. The owner wants to see the result of its operation after a month of existence December, 2020. December 1 Chon Loo invested 1,500,000 and equipment worth 500,000. 3 Paid Permits and licenses to operate 12,000. 5 Bought tables, chairs, on account from SM Malls, 250,000. 8 Rendered services for cash worth 50,000. 9 Rendered services on account with a promissory note from Aces worth 30,000. 10 Bought canvas and paints worth 20,000. 15 Paid salaries of artist for 6 months, worth 300,000. 20 The owner withdraw 10,000 for personal use. 25 Borrowed money from Metro Bank 1,000,000 giving a promissory payable in a year with Interest of 8% per annum. 27 Collected from Aces…

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Chapter 11, Problem 60.1C

To determine

Concept introduction:

Cash flow statement is also known as statement of cash flows. It shows inflow and outflow of cash and it is divided into three categories, i.e., operating, investing and financing activities. The investing cash flow shows the expansion of company in terms of assets, i.e., sale and purchase of those assets which are not intended to be sold in near future.

Whether camera Shop had grown in terms of assets in past two years.

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Create a statement of cash flow from the following transactions from the books of Arts and Styles. The owner wants to see the result of its operation after a month of existence December, 2020. December 1 Chon Loo invested 1,500,000 and equipment worth 500,000. 3 Paid Permits and licenses to operate 12,000. 5 Bought tables, chairs, on account from SM Malls, 250,000. 8 Rendered services for cash worth 50,000. 9 Rendered services on account with a promissory note from Aces worth 30,000. 10 Bought canvas and paints worth 20,000. 15 Paid salaries of artist for 6 months, worth 300,000. 20 The owner withdraw 10,000 for personal use. 25 Borrowed money from Metro Bank 1,000,000 giving a promissory payable in a year with Interest of 8% per annum. 27 Collected from Aces…

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