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All-Star Automotive Company experienced the following accounting events during Year 2: 1. Performed services for $25,000...



All-Star Automotive Company experienced the following accounting events during Year 2: 1. Performed services for $25,000 cash
Submit Check my work Required a. Indicate how each of the events would be classified on the statement of cash flows as operat
WUR b. Prepare a statement of cash flows. Assume All-Star Automotive had a beginning cash balance of $9,000. (Amounts to be d
$ 0 Net cash flow from operating activities Cash flows from investing activities: $ $ 0 Net cash flow from investing activiti
All-Star Automotive Company experienced the following accounting events during Year 2: 1. Performed services for $25,000 cash. 2. Purchased land for $6,000 cash. 3. Hired an accountant to keep the books. 4. Received $50,000 cash from the issue of common stock 5. Borrowed $5,000 cash from State Bank 6. Paid $14,000 cash for salary expense. 7. Sold land for $9.000 cash. 8. Paid $2,000 cash on the loan from State Bank 9. Paid $2,800 cash for utilities expense. 10. Paid a cash dividend of $5,000 to the stockholders. Required a. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not applicable (NA). Event Classification < Prev 2 of 5 !!! Next >
Submit Check my work Required a. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA). Investing activities (IA), financing activities (FA), or not applicable (NA). Event Classification 1. 2. 3. 4 5 6. 7. 8. 9 10.
WUR b. Prepare a statement of cash flows. Assume All-Star Automotive had a beginning cash balance of $9,000. (Amounts to be deducted should be indicated with a minus sign.) ALL-STAR AUTOMOTIVE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities: $ 0 Net cash flow from investing activities Infantis 2 of 5 < Prev Next > HH
$ 0 Net cash flow from operating activities Cash flows from investing activities: $ $ 0 Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance $ 0
0 0
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Answer #1
Event Classification
1 OA
2 IA
3 OA
4 FA
5 FA
6 OA
7 IA
8 FA
9 OA
10 FA
ALL STAR AUTOMOTIVE COMPANY
Statement of cash flows
For the year ended Dec,year 2
Particular Amount Amount

cash flow from operating

Activities

Performed service for cash 25,000
Paid salary expense -14,000
Paid utilities expense -2,800

Net cash flow from

Operating activities

$8200

$8,200

cash flow from

investing activities

Purchase land -6,000
Sold land 9,000

Net cash flow from

Investing activities

$3000

$3,000

cash flow from

Financing activities

Issue of common stock 50,000
Borrowed from bank 5,000
Paid loan to state bank -2,000
Paid cash dividend -5,000

Net cash flow

From financing activities

$48000

$48000

Net cash flow during

the year

$59,200

Add Opening balance of cash $9000
Ending Cash balance $68,200

Note: hired accountaccountant to keep the books (Amount is not mention so not consider in cash flows statement.

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