Rose opened an Office Cleaning Service company onJanuary 1, 2020. During 2020 she had the followingtransactions.(1)She started the business with investing $30,000of her own money (business was organized ascorporation)(2) She borrowed $45,000 from bank by issuing a 5-year note.(3)She purchased $15,000 of furniture andequipment in cash.(4)$20,000 in cash.(5)She purchased a truck for business use atDuring the year, provided $70,000 services tocustomers of which $66,000 was collected, the rest wasnot yet collected as of Dec. 31st.(6)During the year, she incurred $55,000 of salaries,rent, utilities, and insurance expenses of which $3000was still not paid as of Dec. 31st.(7)During the year, she paid $3000 interest on thenote to the Bank(8)(9)During the year, she took $8,000 as dividend.During the year, purchased $2000 of supplies incash. $500 of the supplies was left as of Dec. 31st.(10)During the year, she sold $1000 of unnecessaryequipment in cash.(11)Depreciation expense for year was $4,500.Compute net cash flows from financing activities.

Cash flows from financing activities refer to the net cash which is used for funding the company…

Rose opened an Office Cleaning Service company on January 1, 2020. During 2020 she had the following transactions. (1) She started the business with investing $30,000 of her own money (business was organized as corporation) (2) She borrowed $45,000 from bank by issuing a 5- year note. (3) She purchased $15.000 of furniture and

Rose opened an Office Cleaning Service company on January 1, 2020. During 2020 she had the following transactions. (1) She started the business with investing $30,000 of her own money (business was organized as corporation) (2) She borrowed $45,000 from bank by issuing a 5- year note. (3) She purchased $15.000 of furniture and

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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