All$-$Star Automotive Company experienced the following accounting events during Year $3$:

Performed services for $$14,300$ cash.

Purchased land for $$7,300$ cash.

Hired an accountant to keep the books.

Received $$33,000$ cash from the issue of common stock.

Borrowed $$8,600$ cash from State Bank.

Paid $$4,300$ cash for salary expense.

Sold land for $$8,600$ cash.

Paid $$3,300$ cash on the loan from State Bank.

Paid $$4,500$ cash for utilities expense.

Paid a cash dividend of $$1,300$ to the stockholders.

Required

a$.$ Indicate how each of the events would be classified on the statement of cash flows as operating activities,

investing activities, or financing activities.

b$.$ Prepare a statement of cash flows for Year $3.$ Assume All$-$Star Automotive Company had a beginning cash

balance of $$9,300$ on January $1,$ Year $3.($The company has additional accounts, but they are not needed for this

question.$)$ Prepare a statement of cash flows for Year $3.$ Assume All$-$Star Automotive Company had a beginning cash balance of $$9,3$

on January $1,$ Year $3.($The company has additional accounts, but they are not needed for this question.$)$

Note: Cash Outflows should be indicated with a minus sign. Ch $1$ Assignment

i

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$\backslash$table$[[$Lasn paid to purcnase ana$],[$Cash payments for utilities expense,,$],[$Net cash flow from investing activities,$$,0],[$Cash flows from financing activities:$],[$Cash payment on loan,,$],[$Cash payments for dividends,,$],[$Cash payments for utilities expense,,$],[$Cash payments for utilities expense,,$],[$Cash payments for utilities expense,,$],[$Net cash flow from financing activities,,$0],[$Net increase in cash$],[$Plus: Beginning cash balance$],[$Ending cash balance,$$,0]]$