Questions: ACC 120 I05 Financial Accounting Spring 2025 (i) Homework: Chapter 1 Homework-Part 2 Question Complete Part 2 of 4 My score: 43.71 / 100 pts Data table Cash receipts: Collections from customers Owner contribution 23,000 Cash payments: 10,000 Rent 2,000 Utilities 900 Salaries 2,600 Purchase of equipment 7,750 Owner withdrawal 11,750 Cash balance, March 1, 2024 25,000 Cash balance, March 31, 2024 Prairie Homes had the following cash transactions for the month ended March 31, 2024. Prepare the statement of cash flows for Prairie Homes for the month ended March 31, 2024. Cash flows from operating activities: Receipts: Collections from customers 23,000 Payments: To employees (2,600) To suppliers (2,900) Net cash provided (used) by operating activities 17,500 Cash flows from investing activities: Purchase of equipment Net cash provided (used) by investing activities

To prepare the statement of cash flows for Prairie Homes for the month ended March 31, 2024, we need to categorize the cash transactions into operating, investing, and financing activities. Let's break down the information provided:

Operating activities include cash transactions related to the core business operations. Based on the data provided:

• Receipts:

  • Collections from customers: $23,000

• Payments:

  • To employees (Salaries): $(2,600)$
  • To suppliers (Rent and Utilities): $(2,000 + 900) = $(2,900)$

• Net Cash Provided by Operating Activities:

  • Net cash = Collections from customers - Payments to employees - Payments to suppliers
  • Net cash = $23,000 - $2,600 - $2,900 = $17,500$

Investing activities include cash transactions for the purchase and sale of long-term assets.

• Purchase of Equipment:

  • $(7,750)$

• Net Cash Used by Investing Activities:

  • Net cash = $(7,750)$

Financing activities include cash transactions related to the owner's contributions and withdrawals.

• Owner Contribution:

  • $23,000

• Owner Withdrawal:

  • $(11,750)$

• Net Cash Provided by Financing Activities:

  • Net cash = Owner contribution - Owner withdrawal
  • Net cash = $23,000 - $11,750 = $11,250$

To find the cash balance at the end of March 31, 2024, we need to consider the beginning cash balance and the net cash flows from each activity:

• Beginning Cash Balance (March 1, 2024): $25,000
• Net Cash Provided by Operating Activities: $17,500
• Net Cash Used by Investing Activities: $(7,750)$
• Net Cash Provided by Financing Activities: $11,250

Ending Cash Balance (March 31, 2024):

\[ \text{Ending Cash Balance} = \text{Beginning Cash Balance} + \text{Net Cash from Operating Activities} + \text{Net Cash from Investing Activities} + \text{Net Cash from Financing Activities} \]

\[ \text{Ending Cash Balance} = 25,000 + 17,500 - 7,750 + 11,250 = 46,000 \]

Therefore, the cash balance at the end of March 31, 2024, is $46,000.