The following transactions pertain to the operations of ewing company for year 2.
1.acquired $30,000 cash from the issue of common stock
2.provided $65,000 of services on account
3.paid $22,000 cash on accounts payable
4.performed services for $8000 cash
5.collected $51,000 cash from accounts receivable
6.incurred $37,000 of operating expenses on account
7.paid $6500 cash for one years rent in advance
8.paid a $4000 cash dividend to the stockholders
9.paid $1200 cash for supplies to be used in the future
10.recognize $3100 of accrued salary expense
prepare a statement of cash flow‘s. the beginning cash balance was $6700.

ending cash balance                    62,000

Explanation:

operating activities:

services on cash       8,000

collected from AR    51,000

paid to supplies     (22,000)

rent paid                   (6,500)

supplies paid            (1,200)

cash generated from operating: 29,300

financing activities:

issuance of stock      30,000

cash dividends paid   (4,000)

cash generated from financing: 26,000

cash generated during the year: 55,300

beginning cash balance                 6, 700

ending cash balance                    62,000

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.