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Question 3 Statement of Cash Flows

Nick Ltd is the founder and owner of a health club. His club operates in Toronto, Ontario and has been in the same location since 2014. The health club offers a variety of services to its members (group classes, personal training etc.). The club also will put on special fitness events. The fitness facility has everything - free weights, squat racks, cardio machines (treadmills, bikes and ellipticals), yoga mats, stability balls, pull-up bars, etc. Since Nick charges a premium for the membership to the club, he is constantly looking at updating and expanding the fitness equipment. This past year he purchased a number of weighted battle ropes, new rowing machines a number of additional kettle bells. You have been presented with the following summarized information from his statement of cash flows for the year ended December 31, 2017:

Cash from operations	46,250
Cash from investing activities	(26,250)
Cash from financing activities	24,300

What was the net change in cash for the period?

Explain each type of cash flow and provide an example of the types of transactions that make up the operating, investing and financing section of Nicks cash flow statement.

Examine the cash flow pattern for Nick Ltd. What does this pattern say about the situation the company is in?

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