Required: C) Classify each event in the second month as financing, investing, or operating. 1. ITP borrowed additional $2,000 cash from Fortis Bank. 2. ITP rented a studio for a bargained price of $1,000 per month. In order to get this deal, on October 1, ITP paid $3,000 cash in advance for the future three months. 3. ITP paid $1,200 cash to purchase one additional flash and two lenses on October 1. These equipment are expected to be used for two years, and has no residual value. 4. ITP completed five 2-hour photo sessions in October. ITP charged $200 for each hour. Payment for all five sessions are received for total $2,000 in cash. 5. ITP completed two 2-hour photo sessions for her uncle Sam, which has been paid in September. 6. ITP paid $100 cash for utility expense on October 20. 7. ITP made a $100 cash dividend to the owners. 8. ITP continued to allocate $300 as depreciation expense for October. Required: D) Prepare Statement of Cash Flows Using Direct Method. Image Town Pictures Statement of Cash Flows For the Month Ended October 30, 2023 Operating Activities: Inflow from Customers Outflow for Expenses Net inflow from Operating Activities Investing Activities: Outflow to Purchase Equipment. Net outflow from Investing Activities Financing Activities: Inflow from Issue of Common Stock Inflow from Issue of Note Payable. Outflow for distribution of Dividend Net Inflow from Financing Activities Net Change in Cash. Plus Beginning Cash Balance Ending Cash Balance

Required: C) Classify each event in the second month as financing, investing, or operating. 1. ITP borrowed additional $2,000 cash from Fortis Bank. 2. ITP rented a studio for a bargained price of $1,000 per month. In order to get this deal, on October 1 , ITP paid $3,000 cash in advance for the future three months. 3. ITP paid $1,200 cash to purchase one additional flash and two lenses on October 1 . These equipment are expected to be used for two years, and has no residual value. 4. ITP completed five 2-hour photo sessions in October. ITP charged $200 for each hour. Payment for all five sessions are received for total $2,000 in cash. 5. ITP completed two 2 -hour photo sessions for her uncle Sam, which has been paid in September. 6. ITP paid $100 cash for utility expense on October 20. 7. ITP made a $100 cash dividend to the owners. 8. ITP continued to allocate $300 as depreciation expense for October. Required: D) Prepare Statement of Cash Flows Using Direct Method. Image Town Pictures Statement of Cash Flows For the Month Ended October 30, 2023 Operating Activities: Inflow from Customers Outflow for Expenses Net inflow from Operating Activities Investing Activities: Outflow to Purchase Equipment Net outflow from Investing Activities Financing Activities: Inflow from Issue of Common Stock Inflow from Issue of Note Payable Outflow for distribution of Dividend Net Inflow from Financing Activities Net Change in Cash Plus Beginning Cash Balance Ending Cash Balance Required: C) Classify each event in the second month as financing, investing, or operating. 1. ITP borrowed additional $2,000 cash from Fortis Bank. 2. ITP rented a studio for a bargained price of $1,000 per month. In order to get this deal, on October 1 , ITP paid $3,000 cash in advance for the future three months. 3. ITP paid $1,200 cash to purchase one additional flash and two lenses on October 1 . These equipment are expected to be used for two years, and has no residual value. 4. ITP completed five 2-hour photo sessions in October. ITP charged $200 for each hour. Payment for all five sessions are received for total $2,000 in cash. 5. ITP completed two 2 -hour photo sessions for her uncle Sam, which has been paid in September. 6. ITP paid $100 cash for utility expense on October 20. 7. ITP made a $100 cash dividend to the owners. 8. ITP continued to allocate $300 as depreciation expense for October. Required: D) Prepare Statement of Cash Flows Using Direct Method. Image Town Pictures Statement of Cash Flows For the Month Ended October 30, 2023 Operating Activities: Inflow from Customers Outflow for Expenses Net inflow from Operating Activities Investing Activities: Outflow to Purchase Equipment Net outflow from Investing Activities Financing Activities: Inflow from Issue of Common Stock Inflow from Issue of Note Payable Outflow for distribution of Dividend Net Inflow from Financing Activities Net Change in Cash Plus Beginning Cash Balance Ending Cash Balance