Fleet Limousine Service Inc began operations in late March 2011
Fleet Limousine Service Inc. began operations in late March 2011. At the end of 2011, the following balance sheet was prepared for Fleet.
Additional information:
1. During 2011, land was purchased for $11,000, a building was purchased for $175,000, and equipment was purchased for $233,400.
2. Depreciation expense for 2011 was $35,500.
3. The long-term note was issued for $100,000, and a principal payment of $5,000 was made during 2011.
4. Common stock was issued for $300,000 cash during 2011.
5. During 2011, there was a net loss of 17,200 and no dividends were paid.
Required:
1. Using a spreadsheet, prepare a statement of cash flows for 2011. Assume Fleet Limousine Service Inc use the indirect method.
2. Discuss whether Fleet Limousine Service Inc appear to have matched the timing of inflows and outflows of cash.
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