Module 1 Textbook Problem 3 Learning Objective: 1-5 Prepare a statement of cash flows All-Star Automotive Company experienced the following accounting events during Year 3: 1. Performed services for $15,700 cash. 2. Purchased land for $8,700 cash. 3. Hired an accountant to keep the books. 4. Received $47,000 cash from the issue of common stock. 5. Borrowed $11,400 cash from State Bank. 6. Paid $5,700 cash for salary expense. 7. Sold land for $11,400 cash. 8. Paid $4,700 cash on the loan from State Bank. 9. Paid $5,900 cash for utilities expense. 10. Paid a cash dividend of $2,700 to the stockholders. Required a. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. Prepare a statement of cash flows. Assume All-Star Automotive had a beginning cash balance of $10,700. Complete this question by entering your answers in the tabs below. Required A Required B ALL-STAR AUTOMOTIVE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flows from operating activities: Cash payment for salary expense Cash payments for utilities expense Net cash flow from operating activities Cash flows from investing activities: Cash paid to purchase land $ 15,700 (5,700) (5,900) Cash from the sale of land $ (8,700) 11,400 Net cash flow from investing activities Cash flows from financing activities: Cash receipts from stock issue $ 47,000 Cash payment on loan (4,700) Cash receipts from loan Cash payments for dividends (2,700) Net cash flow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance $ 4,100 $ 2,700 39,600 $ 0