Holden Graham started The Graham Co., a new business that began operations on May 1. The Graham Co. completed the following transactions during its first month of operations. 20 H. Graham invested $43,500 cash in the company in exchange for its common May 1 stock. 1 The company rented a furnished office and paid $2,400 cash for May's rent.. 3 The company purchased $1,920 of office equipment on credit. 5 The company paid $740 cash for this month's cleaning services. 8 The company provided consulting services for a client and immediately collected $5,900 cash. 12 The company provided $2,900 of consulting services for a client on credit. The company paid $750 cash for an assistant's salary for the first half of this 15 month. The company received $2,900 cash payment for the services provided on May 12. 22 The company provided $4,000 of consulting services on credit. The company received $4,000 cash payment for the services provided on May 25 22. 26 The company paid $1,920 cash for the office equipment purchased on May 3. 27 The company purchased $75 of advertising in this month's (May) local paper on credit; cash payment is due June 1. 28 The company paid $750 cash for an assistant's salary for the second half of this month. 30 The company paid $350 cash for this month's telephone bill. 30 The company paid $260 cash for this month's utilities. 31 The company paid $1,400 cash in dividends to the owner (sole shareholder). THE GRAHAM COMPANY Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash paid for rent $ Cash paid for cleaning Cash received from customers Cash paid to employees (2,400) (740) 12,800 (1,500) Cash paid for telephone Cash paid for utilities (350) (260) $ 7,550 Cash flows from investing activities Purchase of equipment Cash (1,920) (1,920) Cash flows from financing activities Investment by stockholder Dividend to stockholder 43,500 (1,400)