Problem: 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 $15,800 cash. 2. Purchased land for $8,800 cash. 3. Hired an accountant to keep the books. 4. Received $48,000 cash from the issue of common stock. 5. Borrowed $11,600 cash from State Bank. 6. Paid $5,800 cash for salary expense. 7. Sold land for $11,600 cash. 8. Paid $4,800 cash on the loan from State Bank. 9. Paid $6,000 cash for utilities expense. 10. Paid a cash dividend of $2,800 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 $10,800. Complete this question by entering your answers in the tabs below. Required A Required B 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). (If the event would not appear on the statement of cash flows, leave the cell blank.) Event Classification 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. < Required A Required B > All-Star Automotive Company experienced the following accounting events during Year 3: 1. Performed services for $15,800 cash. 2. Purchased land for $8,800 cash. 3. Hired an accountant to keep the books. 4. Received $48,000 cash from the issue of common stock. 5. Borrowed $11,600 cash from State Bank. 6. Paid $5,800 cash for salary expense. 7. Sold land for $11,600 cash. 8. Paid $4,800 cash on the loan from State Bank. 9. Paid $6,000 cash for utilities expense. 10. Paid a cash dividend of $2,800 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 $10,800. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a statement of cash flows. Assume All-Star Automotive had a beginning cash balance of $10,800. (Cash Outflows should be indicated with a minus sign.) ALL-STAR AUTOMOTIVE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance $ 0 $ 0 0 0