A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2014, is shown below.

A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2014, is shown below.


Cash receipts: Cash received from customers $637,500 Cash received from additional investment of owner 62,500 Cash payments: Cash paid for operating expenses 475,000 Cash paid for land 90,000 Cash paid to owner for personal use 17,500 


The cash balance as of June 1, 2013, was $58,000.
Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2014.

Answer:

ETHOS CONSULTING GROUP Statement of Cash Flows For the Year Ended May 31, 2014 Cash flows from operating activities:   Cash received from customers $637,500  Deduct cash payments for operating expenses 475,000  Net cash flows from operating activities  $162,500 Cash flows used for investing activities:   Cash payments for purchase of land  (90,000) Cash flows from financing activities:   Cash received from owner as investment $  62,500  Deduct cash withdrawals by owner 17,500  Net cash flows from financing activities  45,000 Net decrease in cash during year  $117,500 Cash as of June 1, 2013  58,000 Cash as of May 31, 2014  $175,500