Bill Sanders started a part-time consulting practice, Sanders Consulting Associates (SCA), on January 1, Year 1. SCA experienced the following transactions during Year 1. It is now year-end and assume that these transactions are the only transactions the company has. Adjusting entries must be made at year-end.

January 1 Acquired $3,000 cash from issuing common stock.

January 15 Purchased $1,100 of supplies on account.

February 20 Recognized $12,800 of consulting revenue for services provided on account.

March 1 Paid $3,600 cash for an insurance policy that covered the company for one year on this date.

April 20 Collected $9,200 of the receivables due from customers.

May 1 Paid cash salaries of $5,000 for Year 1.

May 25 Recognized $5,750 of accrued operating expenses (not related to supplies or insurance)

that were charged to accounts payable.

June 10 Paid suppliers $4,900 of the amount owed on the accounts payable.

July 15 Paid cash for advertising, $1,800.

August 15 Purchased land for $10,000 cash.

August 30 Performed $8,000 of consulting services for cash.

September 5 Paid dividends of $1,200 to the stockholders.

October 1 Borrowed $10,000 cash by issuing a one-year, 6% note to National Bank. Principal and

interest are due at maturity.

November 1 Sanders collected $7,980 cash in advance for services to be provided under a one-year

contract beginning on this date, Year 1.

December 31 It was determined there were $320 of supplies on hand.

1. (3 points) What is the amount of net income SCA will show on its Year 1 Income Statement?
2. (3 points) What amount of liabilities will SCA show on its Balance Sheet as of 12/31, Year 1?
3. (3 points) What is the net amount of cash from operating activities that SCA will report on its Year 1 Statement of Cash Flows?