Calculate the cash flow in each of the following cases: a. Cash paid for rent: Rent expense Prepaid rent, January 11 Prepaid rent, December 31 Cash Flow $ $61,000 10,000 8,000 b. Cash received as interest: Interest income Interest receivable, January 1 Interest receivable, December 31 Cash Flow $ $17,000 3,000 3,700 c. Cash paid for merchandise purchased: Cost of goods sold Inventory, January 1 Inventory, December 31 Accounts payable, January 11 Accounts payable, December 31 Cash Flow $ $99,000 19,000 22,000 11,000 7,000

Calculate the cash flow in each of the following cases: a. Cash paid for rent: Rent expense Prepaid rent, January 11 Prepaid rent, December 31 Cash Flow $ $61,000 10,000 8,000 b. Cash received as interest: Interest income Interest receivable, January 1 Interest receivable, December 31 Cash Flow $ $17,000 3,000 3,700 c. Cash paid for merchandise purchased: Cost of goods sold Inventory, January 1 Inventory, December 31 Accounts payable, January 11 Accounts payable, December 31 Cash Flow $ $99,000 19,000 22,000 11,000 7,000

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Description: 153.Subject :- Accounting Operating Cash Flows (Direct Method)Calculate the cash flow in each of the following cases:a. Cash paid for rent:Rent expensePrepaid rent, January 11Prepaid rent, December 31Cash Flow$$61,00010,0008,000b. Cash received as in

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

153.

Subject :- Accounting

Operating Cash Flows (Direct Method)
Calculate the cash flow in each of the following cases:
a. Cash paid for rent:
Rent expense
Prepaid rent, January 11
Prepaid rent, December 31
Cash Flow
$
$61,000
10,000
8,000
b. Cash received as interest:
Interest income
Interest receivable, January 1
Interest receivable, December 31
Cash Flow
$
$17,000
3,000
3,700
c. Cash paid for merchandise purchased:
Cost of goods sold
Inventory, January 1
Inventory, December 31
Accounts payable, January 1
Accounts payable, December 31
Cash Flow
$
$99,000
19,000
22,000
11,000
7,000

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