Balance Sheet Assets Accounts + Land = + + Receivable + Prepaid Insurance 350 2.900 Accumulated Depreciation -5.600 -6.750 + Supplies + Building 600 75,000 600 75,000 Liabilities Unearned Wages Revenne Payable 0 0 12.000 1,450 Accounts Payable 3.850 2.250 60.000 22.250 34,750 15.000 60.000 Statement of Cash Flows Cash Balances. Jan. 1 10.000 Balances. Jan. 31 18,500 Statement of Cash Flows Jan. 1 Operating 13,500 Jun. 1 Operating -3,000 Jan. 9 Operating 16.000 Jan. 11 Operating -2.500 Jan. 18 Financing 5,000 Jan. 25 Operating 7,500 Jan. 30 Operating -24,000 Jan. 30 Financing -4.000 Net increase in cash 8,500 Beg. cash balance, Jan. 1 10,000 Ending cash bulance, Jan. 31 18,500 + Stockholders' Equity Notes Common Retained + + Payable Stock Earnings 25,000 118,750 15,000 30,000 124,300 Income Statement Jan. 20. Fees earned 26,000 Jan. 25. Fees canned 7,500 Jan. 30. Wages exp. -15,500 -4,250) -2,651) Interest exp. -100 Misc. expense -1,500 Jan. 31. Insurance exp. -450 Jan. 31. Supplies exp. -900 Jan. 31. Depr. Expense -1,150 Jan. 31. Rent revenue 1,500 Jan. 31. Wages exp -1.450 Jan. 31. Fees earned 2,500 Net income 9.SSO Utilities exp Rent expense Statement of Cash Flows SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January 20Y6, SLO Health Care entered into the following transactions: During January 20Y6, San Mateo Health Care entered into the following transactions: Jan. 1 Received $13,500 from Glenn Company as rent for the use of a vacant office in SLO Health Care's building. Glenn paid the rent nine months in advance. 1 Paid $3,000 for a one-year general insurance business policy. 6 Purchased supplies of $900 on account. 9 Collected $16,000 for services provided to customers on account. 11 Paid creditors $2,500 on account. 18 Invested an additional $5,000 in the business in exchange for common stock. 20 Billed patients $26,000 for services provided on account. 25 Received $7,500 for services provided to customers who paid cash. 30 Paid expenses as follows: wages, $15,500 utilities, $4,250 rent on medical equipment, $2,650 interest, $100 and miscellaneous, $1,500. 30 Paid dividends of $4,000 to stockholder (Dr. Denby). Adjustment data for SLO Health Care Inc. for January are as follows: 1. Insurance expired, $450. 2. Supplies on hand on January 31, $600. 3. Depreciation on building, $1,150. 4. Unearned rent revenue earned, $1,500. 5. Wages owed employees but not paid, $1,450. 6. Services provided but not billed to patients, $2,500. Presented in the integrated financial statement format are after-adjustment balances for January. Instructions: 1. Prepare a statement of cash flows for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. If your answer is zero enter "O". SLO HEALTH CARE INC. Statement of Cash Flows For the Month Ended January 31, 2046 Cash flows from (used for) operating activities: Cash received from customers 37,000 Cash paid for expenses -29,500 Net cash flows from operating activities 7,500 Cash flows from (used for) financing activities: Cash received from issuing common of stock 5,000 Cash paid as dividends -4,000 Net cash flows from financing activities 1,000 Net increase in cash 8,500 Cash as of January 1, 2016 Cash as of January 31, 2016 $ 2. Reconcile the net cash flows from operating activities with the net income for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. (Hint: Use adjusted balances in computing increases and decreases in accounts.) San Mateo Health Care Inc. Net Cash Flows from Operating Activities Net income Depreciation Changes in noncash current operating assets and liabilities: Increase in accounts receivable Increase in prepaid insurance Decrease in accounts payable Increase in unearned revenue Increase in wages payable Net cash flows from operating activities $
