Primorsk Corporation began the year 2011 with cash of $27,950. In addition to earning a net income

Question:

Primorsk Corporation began the year 2011 with cash of $27,950. In addition to earning a net income of $19,000 and paying a cash dividend of $9,750, Primorsk borrowed $39,000 from the bank and purchased equipment with $62,500 of cash. Also, Accounts Receivable increased by $3,900, and Accounts Payable increased by $5,850.

Determine the amount of cash on hand at December 31, 2011, by preparing a statement of cash flows similar to the one in Exhibit 1.11.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...