Prepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information. Within each section of the statement, use the drop-down menus to enter the accounts. Then enter the account balances and calculate ending balances. Enter decreases in cash with a minus sign or parentheses.

Cash balance, December 1, 2016 is $18,600

Transactions

Dec. 1 Common stock was issued to stockholders for $7,900 cash.

7 Purchased equipment for $1,900 on account.

14 Paid $19,800 cash for land.

17 Paid cash expenses: office rent, $1,600; employees' salaries, $1,400; utilities, $70.

23 Paid cash dividends of $2,500.

26 Earned service revenue for the month, $4,900, receiving cash.

Ending cash balance $6,030

Explanation:

The preparation of the Cash Flows Statement is presented below:

Cash flow from Operating Activities

Add: Service revenue earned $4,900

Less: Office Rent - $1,600

Less: Employees salaries - $1,400

Less: Utilities - $70

Net cash flow provided by Operating Activities $1,830

Cash flow from Investing Activities

Less: Purchase of land $19,800

Net cash used by Investing Activities - $19,800

Cash flow from Financing Activities

Add: Issuance of common stock $7,900

Less: Dividend paid - $2,500

Net cash flow provided by Financing Activities $5,400

Net increase or decrease in cash would be

Net cash flow provided by Operating Activities $1,830 (A)

Net cash used by Investing Activities - $19,800 (B)

Net cash flow provided by Financing Activities $5,400 (C)

Decrease in cash - $12,570 (A + B + C)

Add: Beginning cash balance $18,600

Ending cash balance $6,030