A Summary of Cash Flows for Evelyn's Event Planning for the Year

question 172

Essay

A summary of cash flows for Evelyn's Event Planning for the year ended December 31 is shown below. Cash receipts:
$\begin{array}{lr}\text { Cash received from customers } & \$ 57,360 \\\text { Cash received from bank loan } & 15,000\end{array}$ ? $\begin{array}{lr}\text { Cash payments: }\\\text { Cash paid for oper ating expenses } & \$ 12,120 \\\text { Cash paid for equipment } & 18,070 \\\text { Cash paid for party supplies } & 9,480 \\\text { Dividends } & 12,000\\\\\text { The cash balance as of January } 1&\$15,580\end{array}$ ?
Prepare a statement of cash flows for Evelyn's Event Planning for the year ended December 31.

---

Definitions:

Total Taxes

The cumulative amount of taxes levied by a government on an individual, corporation, or other entity in a specified period, including income, sales, and property taxes.

Marginal Tax Rates

The rate at which your income above a certain threshold is taxed, showing the tax imposed on the incremental dollar of income.

Deductions

Amounts subtracted from gross income to determine taxable income, potentially reducing the amount of tax owed.

Marginal Tax Rate

The tax rate applied to the next dollar of taxable income, indicating the percentage of tax paid on any additional dollar earned.