Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Below are several transactions for a company for Year 1. a. Issue common stock for cash, $54.000. b. Purchase building and land with cash, $39,000.
Below are several transactions for a company for Year 1. a. Issue common stock for cash, $54.000. b. Purchase building and land with cash, $39,000. c. Provide services to customers on account, $7,400. d. Pay utilities on building, $1,200. e. Collect $5,400 on account from customers. f. Pay employee salaries, $9,400. g. Pay dividends to stockholders, $4,400. Required: 1. For each transaction, determine the amount of cash flows. If cash is involved in the transaction, indicate whether the company should classify it as operating, investing, or financing in a statement of cash flows. (Enter N/A if the question is not applicable to the statement. List cash outflows as negative amounts.) Transaction Issue common stock for cash. Purchase building and land with cash. Provide services to customers on account. Pay utilities on building. Collect cash from customer on account. Pay employee salaries. Pay dividends to stockholders Operating, Investing Cash Flows or Financing S 54,000 Financing S (39,000) Investing S O NA S (1,200) Operating S 5,400 Operating S (9,400) Operating S (4,400) Financing 2. Calculate net cash flows for the year. (List cash outflows as negative amounts.) S Collect Cash from Customers on Account Pay Employee Salaries Pay Utilities on Building Purchase Building and Land with Cash Issue Common Stock for Cash Pay Dividends to Stockholders 4,400 (8,400) (700) (29,000) 44.000 (3,400) Net cash flows for the year S 6.900 3. Assuming the balance of cash on January 1, Year 1, equals $4,800, calculate the balance of cash on December 31, Year 1. Cash balance $ 10,700
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started