Consider the following information: Service Revenue for the year = $81,000. Of this amount, $70,500 is collected during the year and $10,500 is expected to be collected next year.Salaries Expense for the year = $41,000. Of this amount, $35,500 is paid during the year and $5,500 is expected to be paid next year.Advertising Expense for the year = $10,500. All of this amount is paid during the year.Supplies Expense for the year = $4,500. No supplies were purchased during the year.Utilities Expense for the year = $13,000. Of this amount, $11,500 is paid during the year and $1,500 is expected to be paid next year.Cash collected in advance from customers for services to be provided next year (Unearned Revenue) = $2,500. Required:1. Calculate operating cash flows.2. Calculate net income.Complete this question by entering your answers in the tabs below.Required 1 Required 2Calculate operating cash flows. (List cash outflows as negative amounts.)1. Cash collected from customers for services provided2. Salaries paid for the year3. Advertising paid for the year4. Supplies paid for the year5. Utilities paid for the year6. Cash collected in advance from customersNet operating cash flows Calculate net income. (List expenses as negative amounts.)1. Service Revenue for the year2. Salaries Expense for the year3. Advertising Expense for the year4. Supplies Expense for the year5. Utilities Expense for the year6. Unearned RevenueNet income

Operating activities relate to the main business activities and therefore relate to the day to day…

Answered: Service Revenue for the year = $81,000.…

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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Question

Consider the following information:

Service Revenue for the year = $81,000. Of this amount, $70,500 is collected during the year and $10,500 is expected to be collected next year.
Salaries Expense for the year = $41,000. Of this amount, $35,500 is paid during the year and $5,500 is expected to be paid next year.
Advertising Expense for the year = $10,500. All of this amount is paid during the year.
Supplies Expense for the year = $4,500. No supplies were purchased during the year.
Utilities Expense for the year = $13,000. Of this amount, $11,500 is paid during the year and $1,500 is expected to be paid next year.
Cash collected in advance from customers for services to be provided next year (Unearned Revenue) = $2,500.

Required:
1. Calculate operating cash flows.
2. Calculate net income.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate operating cash flows. (List cash outflows as negative amounts.)
1. Cash collected from customers for services provided
2. Salaries paid for the year
3. Advertising paid for the year
4. Supplies paid for the year
5. Utilities paid for the year
6. Cash collected in advance from customers
Net operating cash flows

Calculate net income. (List expenses as negative amounts.)
1. Service Revenue for the year
2. Salaries Expense for the year
3. Advertising Expense for the year
4. Supplies Expense for the year
5. Utilities Expense for the year
6. Unearned Revenue
Net income

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