Prob. 1–3A (Concluded) 4. (Optional) RELIANCE FINANCIAL SERVICES Statement of Cash Flows For the Month Ended July 31, 2014 Cash flows from operating activities: $110,000 Cash received from customers Deduct cash payments for expenses and payments to creditors* (112,400) $ (2,400) Net cash flows used for operating activities Cash flows from investing activities 0 Cash flows from financing activities: $ 50,000 Cash received from issuing capital stock Deduct cash dividends (15,000) Net cash flows from financing activities 35,000 Net increase in cash and July 31, 2014, cash balance $ 32,600 * $3,600 + $33,000 + $20,800 + $55,000; these amounts are taken from the cash column shown in the problem.
Prob. 1–3A (Concluded) 4. (Optional) RELIANCE FINANCIAL SERVICES Statement of Cash Flows For the Month Ended July 31, 2014 Cash flows from operating activities: Cash received from customers $110,000 Deduct cash payments for expenses and payments to creditors* (112,400) Net cash flows used for operating activities $ (2,400) Cash flows from investing activities 0 Cash flows from financing activities: Cash received from issuing capital stock $ 50,000 Deduct cash dividends (15,000) Net cash flows from financing activities 35,000 Net increase in cash and July 31, 2014, cash balance $ 32,600 * $3,600 + $33,000 + $20,800 + $55,000; these amounts are taken from the cash column shown in the problem.
Warren_FinMan12e_SM01_final.docx