Prepare a revised income statement in accordance with generally accepted accounting principles. On the basis of the information for Prestwick Company in Exercise 2.13, prepare a statement of cash flows in a form consistent with generally accepted accounting principles. You may assume all transactions were in cash and that the beginning cash balance was $7,200.

Data from in Exercise 2.13

An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year.

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PRESTWICK COMPANY AUGUST 31, CURRENT YEAR Revenues: Services provided to customers Investment by stockholders... Loan from bank.. Expenses: Payments to long-term creditors Expenses required to provide services to customers.. Purchase of land. Net income $17,000 5,000 15,000 $11,700 7,800 16,000 $37,000 35,500 $ 1,500