A summary of cash flows for Adventure Travel Service for the year ended April 30, 2019, follows:

A summary of cash flows for Adventure Travel Service for the year ended April 30, 2019, follows:

Cash receipts:

Cash received from customers $2,080,000

Cash received from additional investment of owner 60,000

Cash payments:

Cash paid for operating expenses 1,706,000

Cash paid for land 400,000

Cash paid to owner for personal use 40,000

The cash balance as of May 1, 2018, was $203,000.

Prepare a statement of cash flows for Adventure Travel Service for the year ended April 30, 2019.

Answer:

ADVENTURE TRAVEL SERVICE

Statement of Cash Flows

For the Year Ended April 30, 2019

Cash flows from operating activities:  Cash receipts from customers $ 2,080,000 Cash payments for operating expenses (1,706,000) Net cash flow from operating activities$ 374,000 Cash flows used for investing activities: Cash payment for purchase of land(400,000) Cash flows from financing activities: Cash receipt from owner as investment $ 60,000 Cash withdrawals by owner(40,000) Net cash flow from financing activities20,000 Net decrease in cash during year$ (6,000) Cash as of May 1, 2018203,000 Cash as of April 30, 2019$ 197,000