During its 1st month of business, Noodlecake's cash increased by receiving $5,000 from issuing common stock to its owners, borrowing $2,000 from bank, and collecting $3,000 from its customers. Its cash decreased by paying $2,000 to its enmployees and suppliers and $3,000 for the purchase of equipment. On its statement of cash flows, Cash Provided by Operating Activities equals $ Cash from Investing Activities equals $ Cash from Financing Activities equals $ Be sure to use and the Change in Cash equals $ parentheses around the amount if it is a cash outflow, e. g. $(1,000)

Noodlecake

On its statement of cash flows, Cash Provided by Operating Activities equals $__1,000 Cash from Investing Activities equals $__(3,000) Cash from Financing Activities equals $_7,000  and the Change in Cash equals $_5,000 Be sure to use parentheses around the amount if it is a cash outflow, e.g. $(1,000)

Explanation:

a) Data and Calculations:

Financing activities:

Common stock $5,000

Bank loan            2,000

Net cash           $7,000

Operating activities:

Cash from customer $3,000

Cash to employees   (2,000)

Net cash                    $1,000

Investing activities:

Equipment     ($3,000)

Net cash from cash flows = $5,000

The net cash from cash flows or the change in cash flows is the summation of the changes in the operating, investing, and financing activities of Noodlecake during the period under review.  It shows by how much the cash has increased or decreased when compared to the beginning balance, which can be zero as in this case.

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