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Statement of stockholders' equity The revenues and expenses of Paradise Travel Service for the year ended May 31, 2016, follow: Fees earned $900,000 Office expense 300,000 Miscellaneous expense 15,000 Wages expense 450,000 Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and $10,000 of dividend year. Common stock had a balance of $60,000 and retained earnings had a balance of $300,000 as of June 1, 2045, Prepare a statement of stockholders' equity for the year ended May 31, 2046 Paradise Travel Service Statement of Stockholders' Equity For the Year Ended May 31, 2016 Common Stock Retained Earnings Total 300,000 Balances, June 1, 2015 Issued common stock Net income 10,000 135,000 Dividends 10,000 Balances, May 31, 2046 Cash paid for operating expenses 758,000 Cash paid for land 150,000 Cash paid as dividends 10,000 The cash balance as of June 1, 2045, was $50,000. Prepare a statement of cash flows for Paradise Travel Service for the year ended May 31, cash payments and decreases in cash. Paradise Travel Service Statement of Cash Flows For the Year Ended May 31, 2016 Cash flows from (used for) operating activities: Cash received from customers 880,000 Cash paid for operating expenses -758,000 Net cash flows from operating activities 122,000 Cash flows from (used for) investing activities: Cash paid for purchase of land Cash flows from (used for) financing activities: Cash received from issuing common stock 40,000 Cash paid for dividends - 10,000 Net cash flows from financing activities 30,000 Net increase in cash 2,000 Cash balance, June 1, 2015 50,000 2,000 Cash balance, May 31, 2016

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