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:
Investing activities include cash transactions for the purchase and sale of long-term assets.
Financing activities include cash transactions related to the owner's contributions and withdrawals.
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):
Ending Cash Balance=Beginning Cash Balance+Net Cash from Operating Activities+Net Cash from Investing Activities+Net Cash from Financing Activities
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.