Cherokee Company began operations when it issued common stock for $80,000 cash. It paid $60,000 cash in advance for a one-year contract to lease delivery equipment for the business. It signed the lease agreement on March 1, 2016, which was effective immediately. Cherokee received $98,000 of cash revenue in 2016.

Record all events in a horizontal statements model. (Record the events as they occurred in question data. In the Cash Flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.)

CHEROKEE COMPANY

Horizontal Statements Model for 2016

Event

Assets

=

Liabilities

+

Stockholders Equity

Income Statement

Statement of Cash Flows

Cash

+

Prepaid Rent

=

+

Common Stock

+

Retained Earnings

Revenue

Expenses

=

Net Income

1.

2.

3.

adj

Bal.

+

=

+

+

=

What is the amount of net cash flow from operating activities for 2016?