4 An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year PRESTWICK COMPANY AUGUST 31, CURRENT YEAR Bevenues: Services provided to evators $15,000 12 Investment by shareholders Loan from bank 3,000 13,000 $31,000 points Expenses Payments to long-term creditors $12,000 Expenses required to provide services to customers Purchase of land 9,900 17,000 30,900 7,100 Based on the information 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 $14,300 (List any deduction in cash and cash outflows as negative amounts.) PRESTWICK COMPANY Statement of Cash Flows. For the Month Ended August 31, Current Year Cash flows from operating activities: Cash received from revenues Cash paid for expenses Cash flows from investing activities: Cash paid for purchase of land Net cash provided by investing activities Cash flows from financing activities: Cash paid to long-term creditors Cash received from bank loan. Cash received from investment by shareholders Cash balance, August 1, Current Year Cash balance, August 31, Current Year $ 15,000 (9,900) 5,100 $ (17,000) (17,000) $ (12,000) 13,000 3,800 $ 4,800 $ 0