Statement of Cash Flows

SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January 20Y6, SLO Health Care entered into the following transactions:

During January 20Y6, San Mateo Health Care entered into the following transactions:

Jan. 1		Received $13,500 from Glenn Company as rent for the use of a vacant office in SLO Health Cares 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:

1. Insurance expired, $450.
2. Supplies on hand on January 31, $600.
3. Depreciation on building, $1,150.
4. Unearned rent revenue earned, $1,500.
5. Wages owed employees but not paid, $1,450.
6. Services provided but not billed to patients, $2,500.

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

Instructions:

1. Prepare a statement of cash flows for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. If your answer is zero enter "0".

2. Reconcile the net cash flows from operating activities with the net income for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. (Hint: Use adjusted balances in computing increases and decreases in accounts.) San Mateo Health Care Inc. Net Cash Flows from Operating Activities Net income 9,550 Depreciation 1,150 Changes in noncash current operating assets and liabilities: Increase in accounts receivable 34,750 X Increase in prepaid insurance 900 X Decrease in accounts payable -900 x Increase in unearned revenue 12,000 Increase in wages payable 1,450 0 X 0 Net cash flows from operating activities Instructions: 1. Prepare a statement of cash flows for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. If your answer is zero enter "O". SLO HEALTH CARE INC. Statement of Cash Flows For the Month Ended January 31, 20Y6 Cash flows from (used for) operating activities: Cash received from customers 26,000 X Cash paid for expenses -26,000 Net cash flows from operating activities 8,650 X Cash flows from (used for) financing activities: Cash received from issuing common of stock 5,000 Cash paid as dividends -4,000 Net cash flows from financing activities 1,000 Net increase in cash $ 8,500 Cash as of January 1, 2016 10,000 Cash as of January 31, 2016 18,500