1. What amount of revenue will Lee report on the Year 1 income statement?

2. What amount of cash flow from revenue will be reported on the statement of cash flows?

3. What is the net income for the period?

4. What is the net cash flow from operating activities for the period? (Enter cash outflows as negative amounts.)

5. What is the amount of net cash flow from investing activities? (Enter cash outflows as negative amounts.)

6. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet?

In Year 1, Lee Inc. billed its customers $58,000 for services performed. The company collected $41,600 of the amount billed. Lee incurred $36,200 of other operating expenses on account, and paid $23,500 of the accounts payable. It acquired $28,000 cash from the issue of common stock and invested $19,000 cash in the purchase of land. Required (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: (Enter any decreases to account balances with a minus sign.) Event Stockholders' Equity Common Retained Stock Earnings 58,000 + + LEE INC. Effect of Events on the General Ledger Accounts Assets Liabilities + Accounts Cash Accounts Land Receivable Payable 58,000 41,600 (41,600) 36,200 + (23,500) (23,500) + 28,000 (19,000) 19,000 = = 27,100 16,400 19,000 = 12,700 + 1. Sales on account 2. Collected accounts receivable 3. Incurred expense 4. Paid accounts payable 5. Issue of stock + + + (36,200) + + + 28,000 + 6. Purchase land + + Totals + 28,000 + 21,800 +