Textbook Problem

Preparing a Prospective Statement of Cash Flows

Jane and Harvey Wentland have decided to open a retail athletic supply store, Fitness Outfitters Inc. They will stock clothing, shoes, and supplies used in running, swimming, bicycling, weight lifting, and other exercise and athletic activities. During their first year of operations, 2019, expect the following results. (Subsequent years are expected to be more successful.)

By the end of 2019, Fitness Outfitters needs to have a cash balance of $5,000 and is expected to have the following partial balance sheet:

Required:

Prepare as much of the statement of cash flows for 2019 as you can. Use the direct method to determine cash flows from operations.