Problem: Please help complete using transaction data to prepare a statement of cash flows.
Store Company engaged in the following transactions during the 2007 accounting period. The beginning cash balance was $28,600.
Net Cash flow from Operating Activities ($110,775)
Investing Activities ($31,800)
Financing Activities ($120,000)
1. Credit sales were $250,000. The beginning receivables balance was $87,000 and the ending balance was $83,000.
2. Salaries expense for the period was $56,000. The beginning salaries payable balance was $3,500 and the ending balance was $2,000.
3. Other operating expenses for the period was $56,000. The beginning operating expense payable balance was $4,500 and the ending balance was $8,500.
4. Recorded $19,500 of depreciation expense. The beginning and ending balances in the accumulated depreciation account were $14,000 and $33,500 respectively.
5. The equipment account had beginning and ending balances of $210,000 and $240,000, respectively. The increase was caused by the cash purchase of equipment.
6. The beginning and ending balances in the notes payable account were $50,000 and $150,000, respectively. The increase was caused by additional cash borrowing.
7. There was $6,000 of interest expense reported on the income statement. The beginning and ending balances in the interest payable account were $1,500 and $1,000, respectively.
8. The beginning and ending merchandise inventory account balances were $90,000 and $108,000, respectively. The company sold merchandise with a cost of $156,000(cost of goods sold for the period was $156,000). The beginning and ending balances of accounts payable were $9,500 and $11,500 respectively.
9. The beginning and ending balances of notes receivable were $5,000 and $10,000, respectively. The increase resulted from a cash loan to one of the company’s employees.
10. The beginning and ending balances of the common stock account were $100,000 and $120,000, respectively. The increase was caused by the issue of common stock for cash.
11. Land had beginning and ending balances of $50,000 and $41,000, respectively. Land that cost $9,000 was sold for $12,200, resulting in a gain of $3,200.
12. The tax expense for the period was $7,000. The taxes payable account had a $950 beginning balance and an $875 ending balance.
13. The investments account had beginning and ending balances of $25,000 and $29,000, respectively. The company purchased investments for $18,000 cash during the period and investments that cost $14,000 were sold for $9,000 resulting in a $5,000 loss.