The following transactions pertain to the operations of Ewing Company for Year 1: 1. Acquired $22,500 cash from the issue of common stock. 2. Provided $19,150 of services on account. 3. Paid $17,500 cash on accounts payable. 4. Performed services for $41,500 cash. 5. Collected $5,500 cash from accounts receivable. 6. Incurred $8,700 of operating expenses on account. 7. Paid a $26,300 cash for one year's rent in advance. 8. Paid a $8,800 cash dividend to the stockholders. 9. Paid $2,700 cash for supplies to be used in the future. 10. Recognized $34,000 of accrued salary expense. Required a. Classify the cash flows from these transactions as operating activities (OA). Investing activities (IA), or financing activities (FA). Use NA for transactions that do not affect the statement of cash flows. Classification Transaction 1. 2. 3 4. 5. 6. 7. 8 9. 10. b. Prepare a statement of cash flows. (There is no beginning cash balance.) (Amounts to be deducted should be indicated with a minus sign.) EWING COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities 0 Net cash flow from financing activities Net change in cash 0 Ending cash balance $ 0