Below is a summary of all transactions of Dreamworks Bedding Supplies for the month of August 2012.
Cash Transactions
Cash collections from:
Customers ............................................................$ 85,400
Sale of unused land ...................................................14,700
Issuance of common stock ...........................................20,000
Interest earned on savings account .....................................200
Cash payments for:
Employee salaries ...................................................(46,100)
Delivery truck ........................................................(32,500)
Advertising expense ..................................................(4,900)
Office supplies .........................................................(2,800)
Repayment of borrowing ............................................(8,000)
Bedding material ....................................................(16,200)
Noncash Transactions
Sales to customers on account .........................................11,300
Purchase of materials on account .......................................7,400
Exchange common stock for building ................................82,000
Required:
Prepare a statement of cash flows for the month of August, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of August is $7,300.