Question 1

Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2024, the company begins operations by issuing stock for $11,000 and obtaining a loan from a local bank for $29,000. By the end of 2024, the company provides will preparation services of $36,000 cash and pays employee salaries of $27,000. In addition, Smith pays $2,400 in cash dividends to stockholders on December 31, 2024.

Determine the amount of financing cash flows Smith would report in 2024. (Amounts to be deducted should be indicated with a minus sign.)

Issuance of stock
Borrowing from bank
Preparation services
Employee salaries
Payment of dividends
Total financing cash flows	$0

Question 2

On January 12, Ferrell Incorporated obtains a permit to start a comedy club, which will operate only on Saturday nights. To prepare the club for the grand opening, Ferrell purchases tables and chairs for $10,200 cash on January 16. Ferrell also purchases cleaning supplies on account for an additional $5,800.

Determine the amount of investing cash flows Ferrell would report in January.

	Total investing cash flows