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Statement of Cash Flows

SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January 20Y6, SLO Health Care entered into the following transactions:

During January 20Y6, San Mateo Health Care entered into the following transactions:

Jan. 1 Received $13,500 from Glenn Company as rent for the use of a vacant office in SLO Health Care’s building. Glenn paid the rent nine months in advance. 1 Paid $3,000 for a one-year general insurance business policy. 6 Purchased supplies of $900 on account. 9 Collected $16,000 for services provided to customers on account. 11 Paid creditors $2,500 on account. 18 Invested an additional $5,000 in the business in exchange for common stock. 20 Billed patients $26,000 for services provided on account. 25 Received $7,500 for services provided to customers who paid cash. 30 Paid expenses as follows: wages, $15,500 utilities, $4,250 rent on medical equipment, $2,650 interest, $100 and miscellaneous, $1,500. 30 Paid dividends of $4,000 to stockholder (Dr. Denby).

Adjustment data for SLO Health Care Inc. for January are as follows:

1. Insurance expired, $450.
2. Supplies on hand on January 31, $600.
3. Depreciation on building, $1,150.
4. Unearned rent revenue earned, $1,500.
5. Wages owed employees but not paid, $1,450.
6. Services provided but not billed to patients, $2,500.

Presented in the integrated financial statement format are after-adjustment balances for January.

Instructions:

1. Prepare a statement of cash flows for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. If your answer is zero enter "0".

SLO HEALTH CARE INC. Statement of Cash Flows
For the Month Ended January 31, 20Y6
Cash flows from (used for) operating activities:

Cash flows from investing activities Cash received from customers Cash received from issuance of stock Dividends paid Net cash flows from operating activities Net increase in cash

$- Select –

Cash paid for expenses Cash received from issuance of stock Dividends paid January 31, 20Y6, cash balance Net cash flows from operating activities Net increase in cash

– Select –

Cash flows from investing activities Cash received from issuance of stock Dividends paid January 1, 20Y6, cash balance Net cash flows from operating activities Net increase in cash

$- Select – Cash flows from (used for) financing activities:

Cash flows from investing activities Cash paid for expenses Cash received from customers Cash received from issuing common of stock Net cash flows from operating activities Net increase in cash

$- Select –

Cash flows from investing activities Cash paid for expenses Cash paid as dividends January 1, 20Y6, cash balance Net cash flows from operating activities Net increase in cash

– Select –

Cash flows from investing activities Cash received from issuance of stock Dividends paid January 1, 20Y6, cash balance Net cash flows from financing activities Net increase in cash

– Select –

Cash flows from investing activities Cash received from customers Cash received from issuance of stock Dividends paid Net cash flows from operating activities Net increase in cash

$- Select –

Cash as of January 1, 20Y6 Cash flows from investing activities Cash paid as dividends Cash received from customers Net cash flows from operating activities Net increase in cash

– Select –

Cash as of January 31, 20Y6 Cash flows from investing activities Cash paid as dividends Cash received from customers Net cash flows from operating activities Net increase in cash

$- Select –

2. Reconcile the net cash flows from operating activities with the net income for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. (Hint: Use adjusted balances in computing increases and decreases in accounts.)

San Mateo Health Care Inc. Net Cash Flows from Operating Activities

Net income Net loss

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Decrease in unearned revenue Decrease in wages payable Depreciation Increase in accounts payable Increase in accounts receivable Increase in supplies

$- Select – Changes in noncash current operating assets and liabilities:

Decrease in accounts receivable Decrease in supplies Depreciation expense Increase in accounts payable Increase in accounts receivable Increase in wages payable

– Select –

Decrease in accounts receivable Decrease in supplies Depreciation expense Increase in accounts payable Increase in prepaid insurance Increase in wages payable

– Select –

Decrease in accounts payable Decrease in accounts receivable Decrease in supplies Depreciation expense Increase in accounts payable Increase in wages payable

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Decrease in unearned revenue Decrease in wages payable Increase in accounts payable Increase in accounts receivable Increase in supplies Increase in unearned revenue

– Select –

Decrease in unearned revenue Decrease in wages payable Increase in accounts payable Increase in accounts receivable Increase in supplies Increase in wages payable

– Select – – Select – Net cash flows from operating activities

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