Question

Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $20,000 cash. 4. Provided services for $60,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $40,000 cash for other operating expenses. 7. Paid a $5,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $25,000. Remuired innts in b-4. b-3. Prepare a your w... b-4. Prepare a statement of cash flows for the 2018 accounting period. cevided by retained earnings. Can vou determine the machin. r

Answer 1

DAKOTA COMPANY
Statement of Cash flows
For the Year Ended December 31, 2018
Cash flows from operating activities
Cash received from customers	$    60,000
Cash paid for utilities expense	$    (2,000)
Cash paid for other operating expenses	$ (40,000)
Net cash cash flow from operating activities		$    18,000
Cash flows from investing activities
Cash paid to purchase of fixed assets	$ (20,000)
Net cash flow used by investing activities		$ (20,000)
Cash flows from financing activities
Cash paid for dividends	$    (5,000)
Cash received from borrowings	$    20,000
Cash received from issuance of common stock	$    25,000
Net cash flow from financing activities		$    40,000
Change in cash		$    38,000
Cash and at beginning of period		$                -
Cash and at end of period		$    38,000

You can reach me over comment box if you have any doubts. Please rate this answer