Statement of Cash Flows

SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January $20$Y$6,$ SLO Health Care entered into the following transactions:

During January $20$Y$6,$ San Mateo Health Care entered into the following transactions:

Date Line Item Description

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:

Insurance expired, $$450.$

Supplies on hand on January $31,$ $$600.$

Depreciation on building, $$1,150.$

Unearned rent revenue earned, $$1,500.$

Wages owed employees but not paid, $$1,450.$

Services provided but not billed to patients, $$2,500.$

Presented in the integrated financial statement format are after$-$adjustment balances for January.

Instructions:

Prepare a statement of cash flows for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. The Cash balance at the beginning of January $20$Y$6$ was $$10,000.$ If your answer is zero enter $"0".$

SLO HEALTH CARE INC.

Statement of Cash Flows

For the Month Ended January $31,20$Y$6$

Line Item Description Amount Amount

Cash flows from $($used for$)$ operating activities:

Cash received from customers

$Cash received from customers

$37,000$

Cash paid for expenses

Cash paid for expenses

Net cash flows from operating activities

$Net cash flows from operating activities

Cash flows from $($used for$)$ investing activities

Cash flows from $($used for$)$ investing activities

Cash flows from $($used for$)$ financing activities:

Cash received from issuing common of stock

$Cash received from issuing common of stock

$5,000$

Cash paid as dividends

Cash paid as dividends

$-4,000$

blank

Net cash flows from financing activities

blank Net cash flows from financing activities

$1,000$

Net increase in cash

$Net increase in cash

Cash as of January $1,20$Y$6$

Cash as of January $1,20$Y$6$

Cash as of January $31,20$Y$6$

$Cash as of January $31,20$Y$6$