6014 assessment 8 overview prepare a statement of cash flows for a

6014 Assessment 8



Prepare a statement of cash flows for a hypothetical company using appropriate financial data and methods.

Note: Some of the assessments in this course build upon each other, so you are strongly encouraged to complete them in the order in which they are presented.

The statement of cash flows provides information about an organization’s inflows and outflows of cash during the reporting period. The information provided can give additional insight into the company’s financial condition.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

·         Competency 1: Apply theories, models, and practices of accounting in the construction and analysis of financial statements.

o    Classify a company’s transactions into appropriate categories in a statement of cash flows.

·         Competency 3: Integrate accounting theories, models, and practices across the organization.

o    Create a statement of cash flows using appropriate financial data and methods.


Cash flows fall into three categories: (1) operating activities, (2) investing activities, and (3) financing activities.

·         Operating activities include activities that are involved with ordinary business operations. These activities are recognized as the changes in current assets and current liabilities, such as inventory, prepaid expenses, accounts payable, and accrued expenses. For current assets, an increase in the account balance represents a decrease in cash. In contrast, an increase in a current liability account represents an increase in cash—meaning the company has deferred the amount of cash to be paid.

·         Investing activities include the cash inflows and outflows for the investment in the company. These investments include the acquisition of a fixed asset (cash outflow), proceeds received for sale of a fixed asset (cash inflow), and repayment of a long-term receivable (cash inflow).

·         Financing activities include the cash inflows and outflows with financing the company’s operations. Companies can utilize a variety of financing sources. Common financing transactions are the issuance of stock (cash inflow), payment of long-term borrowings (cash outflow), or dividend payments (cash outflow).


Required Resources

The following resource is required to complete the assessment.

·         Statement of Cash Flows Template.

Suggested Resources

The following resources provide relevant financial accounting methods and practices.

·         Doran, D. T. (2012). Financial reporting standards: A decision-making perspective for non-accountants. New York, NY: Business Experts Press.

o    Chapter 5, “Liabilities: Current Contingent, and Long Term Debt,” pages 125-161

o    Chapter 10, “Statements of Cash Flows,” pages 297-317

·         Libby, R., Libby, P., & Hodge, F. (2017). Financial accounting (9th ed.). New York, NY: Irwin. – Available from the bookstore

o    Chapter 10, “Reporting and Interpreting Bonds,” pages 498–527.

o    Chapter 12, “Statement of Cash Flows,” pages 588–620.

·         https://courserooma.capella.edu/images/ci/icons/generic_updown.gifAssessment Instructions

Using the transactions listed below for Audrey’s Ice Cream Parlor, prepare a statement of cash flows for the month of April 2012. Classify the transactions into appropriate categories (operating activities, investing activities, and financing activities).

To complete this assessment, use the Statement of Cash Flows Template to complete and submit the following information:

·         a. Received cash of $40,000 total ($10,000 each) from four investors. Each investor received 100 shares of common stock. This took place on April 1.

·         b. Paid three months’ rent for the store on April 1 at $2,000 per month (recorded as prepaid expenses).

·         c. Purchased ice cream and cones for $6,000 on account payable, due in 60 days. This took place on April 2.

·         d. Purchased supplies for $1,000 cash on April 2.

·         e. Received a two-year $11,000 loan at the bank. The note payable is dated April 2.

·         f. Used the money from (e) to purchase a computer for $3,000 (for record keeping and inventory tracking) and to purchase $8,000 of used furniture and fixtures for the store.

·         g. Placed a grand opening advertisement in the local paper for $600 cash.

·         h. Made sales in the first half of the month totaling $5,000: $4,250 was in cash and the rest was on accounts receivable. The cost of the ice cream sold was $2,000.

·         i. Made a $600 payment on accounts payable on April 18.

·         j. Incurred and paid employee wages of $2000 for the month of April.

·         k. Collected accounts receivable of $700 from customers.

·         l. Made a repair to one of the refrigerators for $300.

·         m. Made sales in the last half of the month for $6,000, all for cash. The cost of the ice cream sold was $2,400.


Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
A job well done
Customer 463679, May 13th, 2023
This paper was beautifully and exceeded my expectations! A HUGE thank you to the writer and to the Quality Assurance team for ensuring quality work is produced.
Customer 452455, April 13th, 2023
Excellent writing.
Customer 452441, April 26th, 2022
well done
Customer 452441, April 14th, 2022
very good job
Customer 456821, August 3rd, 2022
The paper was beautifully written. Thank you to the writer for amazing work and to customer for ensuring a quality product
Customer 452455, June 9th, 2023
Just impeccable!
Customer 463001, May 19th, 2022
Thanks a lot Peter
Customer 453199, March 28th, 2020
English 101
Great work.
Customer 456823, May 15th, 2022
I must say that the paper is exceptionally well-written and has exceeded my expectations. I appreciate the excellent work you've done on the paper.
Customer 452455, July 3rd, 2023
Human Resources Management (HRM)
Good work.
Customer 462499, May 29th, 2022
The paper was beautifully written and the ppt slide exceeded my expectations. Thank you so much for assisting me with a last minute assignment.
Customer 452455, May 9th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat