The $36,000 in the net increase cash is incorrect and I cannot figure out why. The events that were added are:

All-Star Automotive Company experienced the following accounting events during 2018:

1. Performed services for $14,400 cash.

2. Purchased land for $7,400 cash.

3. Hired an accountant to keep the books.

4. Received $34,000 cash from the issue of common stock.

5. Borrowed $8,800 cash from State Bank.

6. Paid $4,400 cash for salary expense.

7. Sold land for $8,800 cash.

8. Paid $3,400 cash on the loan from State Bank.

9. Paid $4,600 cash for utilities expense.

10. Paid a cash dividend of $1,400 to the stockholders.

Required

1. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not applicable (NA).

2. Prepare a statement of cash flows for 2018. Assume All-Star Automotive company had a beginning cash balance of $9,400 on January 1, 2018.

Thank you very much!

ALL-STAR AUTOMOTIVE COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Cash receipts from revenue $ 14,400 Cash payment for salary expense (4,400) Cash payments for utilities expense (4,600) $ 5,400 Net cash flow from operating activities Cash flows from investing activities: Cash paid to purchase land (7,400) $ (7,400) $ Net cash flow from investing activities Cash flows from financing activities: Cash receipts from stock issue Cash receipts from loan Cash payments for dividends Cash payment on loan 34,000 8,800 (1,400) (3,400) Net cash flow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance 38,000 36,000 9,400 45,400 GA