AP3-4 Analyzing the Effects of Transactions on the Statement of Cash Flows P3-4) 403-4 Refer to AP3-3 Required: For each transaction in AP3-3 identify whether the cash flow relates to operating (O), investing (1), or financing (F) activities, and indicate the direction and the effect on cash (+ for increase and for decrease). If there is no cash flow effect, write "none) AP3-3 Analyzing the Effects of Transactions by Using T-Accounts, Preparing a Statement on Earnings, and Evaluating the Total Asset Turnover Ratio and the Return on Assets as a Manager (P3-3) L03-4,3-5, 3-6 eXcel Alpine Stables Inc. was established on April 1, 2020. The company provides stables, care for animals, and grounds for riding and show horses. You have been hired as the new assistant controller. The following transactions for April 2020 are provided for your review a. Received contributions from five investors of $60,000 in cash ($12,000 cach), a barn valued at $100,000, and land valued at $90,000 Each investor received 3,000 shares b. Built a small barn for $62,000. The company paid half the amount in cash on April 1, 2020, and signed a three-year note payable for the balance c. Provided animal care services to customers, all on credit for $35.260. d. Rented stables to customers who cared for their own animals, and received cash payment or $13,200. c. Received from a customer S2.400 to board her horse in April May, and June (record as deferred revenue). Purchased hay and feed supplies on account for $3,180 to be used in the summer s Paid $1.240 in cash for water utilities expense incurred in the month 1. Paid S2,700 on accounts payable for previous purchases. Received $10,000 from customers on accounts receivable. Paid $6,000 in wages to employees who worked during the month. k. Purchased a one-year insurance policy for $3,600 at the end of the month 1. Received an electric utility bill for $1,800 for usage in April the bill will be paid in May, mm. Paid $500 cash dividend to cach of the investors at the end of the month. Page 169