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Below are several transactions for a company for Year 1. a. Issue common stock for cash, $48,000. b. Purchase building and land with cash, $33,000.

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Below are several transactions for a company for Year 1. a. Issue common stock for cash, $48,000. b. Purchase building and land with cash, $33,000. c. Provide services to customers on account, $6,800. d. Pay utilities on building. $900. e. Collect $4.800 on account from customers. 1. Pay employee salaries, $8,800. 9. Pay dividends to stockholders, $3,800. Required: 1. For each transaction determine the amount of cash flows. If cash is involved in the transaction indicate whether the company should classify it as operating, investing, or financing in a statement of cash flows. (Enter N/A If the question is not applicable to the statement. List cash outflows as negative amounts.) Answer is complete but not entirely correct. Transaction Cash Flows Operating, investing or Financing Issue common stock for cash $ 48,000 Financing Purchase building and land with cash. $ (33,000) Investing Provide services to customers on account $ 6.000 Operating Pays on building $ 900 Operating Collect cash from customer on account $ (4.800) Operating Pay employee salaries $ (8.800) Operating Pay dividends to stockholders $ (3.800) Financing $ Collect cash from customer on account Pay employee salaries Pay dividends to stockholders (4,800) (8,800) (3.800) $ Operating Operating Financing Oo s 2. Calculate net cash flows for the year. (List cash outflows as negative amounts.) Answer is complete but not entirely correct. $ Issue Common Stock for Cash Purchase Buliding and Land with Canh Provide Services to Customers on Account Pay Utilities on Building Collect Cash from Customers on Account Pay Employee Salaries Pay Dividends to Stockholders Net cash flows for the year O 48,000 (33.000) (6.800) 900 (4,800) (8.800) (3,800) (8,300) S 3. Assuming the balance of cash on January 1. Year 1. equals $4,200, calculate the balance of cash on December 31, Year 1. Cash balance

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