Clark Bell started a personal financial planning business when he accepted $67,000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period beginning June 1, 2016.

a. Show the effects of the advance payment and revenue recognition on the 2016 financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA if the account is not affected. (Do not round intermediate calculations and round your final answers to nearest whole number. Enter any decreases to account balances and cash outflows with a minus sign.)

CLARK BELL PERSONAL FINANCIAL PLANNING

Horizontal Statements Model for 2016

Event

Assets

=

Liabilities

+

Stockholders' Equity

Income Statement

Statement of Cash Flow

Cash

=

Unearned Revenue

+

Retained Earnings

Revenue

Expense

=

Net Income

1.

Advance payment

=

+

=

2.

Revenue earned

=

+

=

Totals

=

+

=

b.	How much revenue would Bell recognize on the 2017 income statement? (Do not round intermediate calculations and round your final answer to nearest whole number.)

c.	What is the amount of cash flow from operating activities in 2017?