ACTIVITY 1 02.27.

24 (MIDTERM)
Subject: FM2
Total Points: (30)
Instructor: PJSSanchez

The following transactions pertain to the operations of Party and Events Consultants Company, an events
planning company owned by Magallanes Solis. The entity had the following itemized transactions during
the month:

1. Cash amounting to 60,400 received from clients

2. Acquired service vehicle worth 420,000
3. Cash investments by the owner recorded worth 250,00
4. Payment to suppliers of materials made worth 10,000
5. Paid salaries to employees for the month amounting to 13,800
6. Purchase additional office equipment amounting to 15,000
7. Payments of insurance for existing service vehicle made amounting to 14,400
8. Cash proceeds amounting to 210,000 from long-term borrowings
9. Withdrawals by the owner recorded amounting to 14,000
10. Payment for office rent amounting 8,000
11. Utilities incurred for the amount paid in cash amounting to 3,000

Required:
a. Classify each of the transactions as a cash flow from Operating Activities (OA), Investing Activities
(IA), or Financing (FA) activities. Transactions that do not affect the statement of cash flows should
be identified as “n/a”.
b. Prepare a statement of cash flows.