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Listed below are several transactions that took place during the second and third years of operations fol Cash Flows: Cash collected from credit customers Year 2 $260,000 Year 3 $400,000 Cash disbursements: Salaries paid to employees for services rendered during the year Advertising Utilities Payment of rent Balance Sheet information Accounts receivable End of year Accounts payable End of year Payables Advertising Payables Utilities Accounts payable total Year 1 $20,000 3,000 800 $3,800 Year 2 $35,000 4,000 1,200 $5,200 180,000 15,000 8,000 80,000 Year 3 $18,000 Required: 1. Calculate the net operating cash flow for years 2 and 3. 2. Prepare an income statement for each year according to the accrual accounting method. 2,000 0 $2,000 210,000 22,000 6,000 0 In addition, you learn that there were no anticipated bad debts on receivables, and the rent payment was for a two-year peri- and year 3.

Listed below are several transactions that took place during the second and third years of operations fol Cash Flows: Cash collected from credit customers Year 2 $260,000 Year 3 $400,000 Cash disbursements: Salaries paid to employees for services rendered during the year Advertising Utilities Payment of rent Balance Sheet information Accounts receivable End of year Accounts payable End of year Payables Advertising Payables Utilities Accounts payable total Year 1 $20,000 3,000 800 $3,800 Year 2 $35,000 4,000 1,200 $5,200 180,000 15,000 8,000 80,000 Year 3 $18,000 Required: 1. Calculate the net operating cash flow for years 2 and 3. 2. Prepare an income statement for each year according to the accrual accounting method. 2,000 0 $2,000 210,000 22,000 6,000 0 In addition, you learn that there were no anticipated bad debts on receivables, and the rent payment was for a two-year peri- and year 3.

FINANCIAL ACCOUNTING
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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Listed below are several transactions that took place during the second and third years of operations for the ABC Company. Cash flows: Cash collected from credit customers Cash disbursements: Salaries paid to employees for services rendered during the year Advertising Utilities Payment of rent Balance Sheet information Accounts receivable End of year Accounts payable End of year. Payables Advertising Payables Utilities. Accounts payable total Year 11 $20,000 3,000 800 $3,800 Year 2 $260,000 180,000 15,000 8,000 80,000 Year 2 $35,000 4,000 1,200 $5,200 Year 3 $18,000 Required: 1. Calculate the net operating cash flow for years 2 and 3. 2. Prepare an income statement for each year according to the accrual accounting method. Navigation: 2,000 0 $2,000 Year 3 $400,000 210,000 22,000 6,000 0 In addition, you learn that there were no anticipated bad debts on receivables, and the rent payment was for a two-year perioc and year 3.
Transcribed Image Text:Listed below are several transactions that took place during the second and third years of operations for the ABC Company. Cash flows: Cash collected from credit customers Cash disbursements: Salaries paid to employees for services rendered during the year Advertising Utilities Payment of rent Balance Sheet information Accounts receivable End of year Accounts payable End of year. Payables Advertising Payables Utilities. Accounts payable total Year 11 $20,000 3,000 800 $3,800 Year 2 $260,000 180,000 15,000 8,000 80,000 Year 2 $35,000 4,000 1,200 $5,200 Year 3 $18,000 Required: 1. Calculate the net operating cash flow for years 2 and 3. 2. Prepare an income statement for each year according to the accrual accounting method. Navigation: 2,000 0 $2,000 Year 3 $400,000 210,000 22,000 6,000 0 In addition, you learn that there were no anticipated bad debts on receivables, and the rent payment was for a two-year perioc and year 3.
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