The following resource is required to complete the assessment.
Using the transactions listed below for Audrey’s Ice Cream Parlor, prepare a statement of cash flows for the month of April 2012. Classify the transactions into appropriate categories (operating activities, investing activities, and financing activities).To complete this assessment, use the Statement of Cash Flows Template to complete and submit the following information:
- a. Received cash of $40,000 total ($10,000 each) from four investors. Each investor received 100 shares of common stock. This took place on April 1.
- b. Paid three months’ rent for the store on April 1 at $2,000 per month (recorded as prepaid expenses).
- c. Purchased ice cream and cones for $6,000 on account payable, due in 60 days. This took place on April 2.
- d. Purchased supplies for $1,000 cash on April 2.
- e. Received a two-year $11,000 loan at the bank. The note payable is dated April 2.
- f. Used the money from (e) to purchase a computer for $3,000 (for record keeping and inventory tracking) and to purchase $8,000 of used furniture and fixtures for the store.
- g. Placed a grand opening advertisement in the local paper for $600 cash.
- h. Made sales in the first half of the month totaling $5,000: $4,250 was in cash and the rest was on accounts receivable. The cost of the ice cream sold was $2,000.
- i. Made a $600 payment on accounts payable on April 18.
- j. Incurred and paid employee wages of $2000 for the month of April.
- k. Collected accounts receivable of $700 from customers.
- l. Made a repair to one of the refrigerators for $300.
- m. Made sales in the last half of the month for $6,000, all for cash. The cost of the ice cream sold was $2,400.
Statement of Cash Flows Scoring Guide
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Statement of Cash Flows
September 21st, 2020 admin
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