EXERCISE 2.11 During the month of October 2009, Gardial Company had the following transaction:

1. Revenues of $10,000 were earned and received in cash.

2. Bank loans of $2,000 were paid off.

3. Equipment of $2,500 was purchased.

4. Expenses of $7,200 were paid.

5. Additional shares of capital stock were sold for $6,000.

Assuming that the cash balance at the beginning of the month was $7,450, prepare a statement of cash flows that displays operating, investing, and financing activities and that reconciles the beginning and ending cash balances.

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