1. Acquired $32,000 cash from the issue of common stock. 2. Borrowed $38,000 cash from National Bank. 3. Earned cash revenues of $50,000 for performing services. 4. Paid cash expenses of $46,000. 5. Paid a $1,200 cash dividend to the stockholders. 6. Acquired an additional $22,000 cash from the issue of common stock. 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $55,000 cash to purchase land. 9. Determined that the market value of the land is $77,000. Problem 1-35A (Algo) Part e e. Determine the net cash flows from operating activities, investing activities, and financing activities that Maben would report on the Year 1 statement of cash flows. (Enter cash outflows as negative amounts.) Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities $ $ 8 Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $32,000 cash from the issue of common stock. 2. Borrowed $38.000 cash from National Bank 3. Earned cash revenues of $50,000 for performing services. 4. Paid cash expenses of $46,000. 5. Paid a $1,200 cash dividend to the stockholders. 6. Acquired an additional $22,000 cash from the issue of common stock 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $55,000 cash to purchase land. 9. Determined that the market value of the land is $77,000. Problem 1-35A (Algo) Part a Required a. Record the preceding transactions in the horizontal statements model, Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). If the element is not affected by the event, leave the cell blank. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) Answer is complete but not entirely correct. MADEN COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Event No Assets Liabilities Stockholders' Equity Notes Cash 4 Land 4 Payable Common Stock 4 Retained Earnings Revenue Expense Net Incoms Statement of Cash Flows 1. 32,000 M 32,000 4 = 2 38,000. 38,000. 32,000 38,000 FA FA 3. 50,000 50,000- 50,000 4 46,000 O . 46,000 O 00 00 000 50,000 50,000 OA 46,000 -46,000 O OA 40,000 5. 1,200 + 1.200 O 6. 22.000 NO 22.000. 7 10,000 N 10000 Q. NO NO 55,000+ 55,000 - 1.200 22.000 -10,000 O -55,000 O FA FA FA 00000 00 14884 255 9. NO Total 254,200 55.000 20,000 . 54,000 97,200 50,000 46,000 50,000 142.000