4567899Cash flows:Cash collected from clients6 Cash disbursements:15161011 Balance Sheet information12 Accounts receivable - End of year13 Accounts payable - End of year14Payables-AdvertisingPayables - UtilitiesSalaries paid to employees for services rendered during the yearAdvertisingUtilitiesPayment of rentAccounts payable totalA1718 Additional information:19202122 Required:23There were no anticipated bad debts on receivables.The rent payment was for a two-year period, year 2 and year 3.BYear 1$20,0003,000800$3,80024 1. Calculate the net operating cash flow for years 2 and 3.25 2. Prepare an income statement for each year according to the accrual accounting meditYear 2Year 2$260,000180,00015,0008,00080,000Year 2$35,0004,0001,200$5,200DYear 3$400,000Year 378724210,00022,0006,0000Year 32 years$18,0002,0000$2,000E

Name: 4567899Cash flows:Cash collected from clients6 Cash disbursements:151
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Description: 4567899Cash flows:Cash collected from clients6 Cash disbursements:15161011 Balance Sheet information12 Accounts receivable - End of year13 Accounts payable - End of year14Payables-AdvertisingPayables - UtilitiesSalaries paid to employees for service

Income Statement: It is a part of the financial statement of a company in which revenue and expenses…

Business

Accounting

4 Cash flows: 5 Cash collected from clients 6 7 8 9 Utilities 10 Payment of rent 11 Balance Sheet information 12 Accounts receivable - End of year 13 Accounts payable - End of year 14 Payables-Advertising Payables-Utilities 15 16 17 18 19 20 21 22 23 Cash disbursements: Salaries paid to employees for services rendered during the year Advertising A Accounts payable total Additional information: There were no anticipated bad debts on receivables. The rent payment was for a two-year period, year 2 and year 3. Required: 4 1. Calculate the net operating cash flow for years 2 and 3. 2. Prepare an income statement for each year according to the accrual B Year 1 $20,000 3,000 800 $3,800 Year 2 Year 2 $260,000 180,000 15,000 8,000 80,000 Year 2 $35,000 4,000 1,200 $5,200 Year 3 D Year 3 $400,000 210,000 22,000 6,000 0 Year 3 $18,000 2 years 2,000 0 $2,000 E

4 Cash flows: 5 Cash collected from clients 6 7 8 9 Utilities 10 Payment of rent 11 Balance Sheet information 12 Accounts receivable - End of year 13 Accounts payable - End of year 14 Payables-Advertising Payables-Utilities 15 16 17 18 19 20 21 22 23 Cash disbursements: Salaries paid to employees for services rendered during the year Advertising A Accounts payable total Additional information: There were no anticipated bad debts on receivables. The rent payment was for a two-year period, year 2 and year 3. Required: 4 1. Calculate the net operating cash flow for years 2 and 3. 2. Prepare an income statement for each year according to the accrual B Year 1 $20,000 3,000 800 $3,800 Year 2 Year 2 $260,000 180,000 15,000 8,000 80,000 Year 2 $35,000 4,000 1,200 $5,200 Year 3 D Year 3 $400,000 210,000 22,000 6,000 0 Year 3 $18,000 2 years 2,000 0 $2,000 E

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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