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As of January 1, 2016, Room Designs Inc. had a balance of $4,600 in Cash, $2,550 in Common Stock, and $2,050 in Retained Earnings. These
As of January 1, 2016, Room Designs Inc. had a balance of $4,600 in Cash, $2,550 in Common Stock, and $2,050 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, 2016. Further analysis of the company's cash account indicated that during the 2016 accounting period, the company had (1) net cash inflow from operating activities of $5,150, (2) net cash outflow for investing activities of $13,100, and (3) net cash inflow from financing activities of $8,500. All revenue and expense events were cash events. The following accounts and balances represent the general ledger of Room Designs Inc. as of December 31, 2016, before closing ROOM DESIGNS General Ledger Stockholders' Equity Liabilities Notes Payable Bal Assets Cash Common Stock Revenue Bal 5,150 3,500 Bal 8,550 Bal 10,000 Land Retained Eanings Expenses Bal 13,100 Bal 2,050 Bal 4,850 Dividends Ba 1,000 Required a. Assume that the net cash inflow from financing activities of $8,500 was caused by three events. Based on the information above, identify these events and determine the cash flow associated with each event. (Amounts to be deducted should be indicated with a minus sign.) ROOM DESIGNS INC Cash flows from financing activities Net cash flow from financing activities
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