Cordell Inc. experienced the following events in Year 1, its first year of operation:

1. Received $49,000 cash from the issue of common stock.
2. Performed services on account for $77,000.
3. Paid a $4,900 cash dividend to the stockholders.
4. Collected $55,000 of the accounts receivable.
5. Paid $49,000 cash for other operating expenses.
6. Performed services for $15,500 cash.
7. Recognized $1,900 of accrued utilities expense at the end of the year.

Required a. & c. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing activity, and IA for investing activity. (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)

b. Determine the amount of net income reported on the Year 1 income statement.

d. Determine the amount of cash flow from operating activities reported on the Year 1 statement of cash flows.

e. What is the balance of the retained earnings account that appears on the Year 1 balance sheet?

Event Revenue Expense Statement of Cash Flows $ 49,000 77,000 (4,900) 55,000 (49,000) 15,500 49,000 15,500 1,900 Net income Net income u Net cash flow from operating activities Balance of retained earnings