A Summary of Cash Flows for Alex Design Services for the Year

question 181

Essay

A summary of cash flows for Alex Design Services for the year ended December 31, 2012, is shown below.
$\begin{array}{ll}\text { Cash receipts}\\\text { Cash received from customers } & \$ 83,990 \\\text { Cash received from additional investment by owner } & 25,000\end{array}$ Prepare a statement of cash flows for Alex Design Services for the year ended December 31, 2012.

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Definitions:

Services Paid

Expenses related to services that have been paid for by a company or individual.

Services Performed

Tasks or activities completed by a business in exchange for payment, often recognized as revenue according to the revenue recognition principle.

Post-closing Trial Balance

A list of all accounts and their balances after the closing entries are made, used to check the accuracy of closing entries and prepare for the next accounting period.

Retained Earnings

The cumulative amount of net income earned by a company that is retained and not distributed to shareholders as dividends.