Professional Documents
Culture Documents
University
Required:
1.Analyze each transaction and classify each as a financing, investing and/or
operating activity (a transaction can represent more than one type of activity). In
doing so, also indicate the cash effect of each, if any. If there is no cash effect,
simply place a check mark () in the appropriate column(s).
2.Prepare a statement of cash flows, using the direct method to present cash flows
from operating activities. Assume the cash balance at the beginning of the month
was $40,000.
Exercise 4-19
Requirement 1
1.
2.
3.
4.
5.
6.
7.
8.
9.
Financing
$300,000
Investing
Operating
$(10,000)
$ (5,000)
(6,000)
(70,000)
55,000
__________
__________
__________
$300,000
$(10,000)
$(26,000)
$264,000
Requirement 2
Wainwright Corporation
Statement of Cash Flows
For the Month Ended March 31, 2011
$ 55,000
Payment of rent
(5,000)
(6,000)
$ (26,000)
(10,000)
(10,000)
300,000
300,000
264,000
40,000
$ 304,000
10,000
$30,000