Cowboy Ice Cream (CIC) issued $18.000 of common stock when the company was started. In addition, CIC borrowed 552,000 from a local bank on July 1. Year 1. The note had a 5 percent annual interest rate and a one-year term to maturity. CIC recognized $80.500 of revenue on account in Year 1 and $94 800 of revenue on account in Year 2 Cash collections of accounts receivable were $64,500 in Year 1 and $74700 in Year 2 CIC paid $47.000 of other operating expenses in Year 1 and $53,000 of other operating expenses in Year 2. CIC repaid the loan and interest at the maturity date, Required a. Organize the information in accounts under an accounting equation b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement c. What amount of interest expense would be reported on the Year income statement? d. What amount of total liabilities would be reported on the December 31 Year 1, balance sheet? e. What amount of retained eamings would be reported on the December 31, Year 1, balance sheet f. What amount of cash flow from financing activities would be reported on the Year 1 statement of cash flows? g. What amount of interest expense would be reported on the Year 2 income statement? h. What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement? i. What amount of assets would be reported on the December 31 Year 2 balance sheet? Cowboy Ice Cream Company Effect of Events on the Accounting Equation Year 1 and Year 2 Assets Liabilities Stockholders' Equity Accounts Notes Interest Common Retained Receivable Payable Payable Stock Earnings Event Cash Year 1 1 2 3 +++++ 1111111 + + + + + + 4 5 + + + + + + + 6 End Bal Year 2 Beg bal. 1 + + + + + 2 3 4 5 End bal b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? c. What amount of interest expense would be reported on the Year 1 income statement? d. What amount of total liabilities would be reported on the December 31, Year 1, balance sheet? e. What amount of retained earnings would be reported on the December 31, Year 1, balance sheet? f. What amount of cash flow from financing activities would be reported on the Year 1 statement of cash flows? g. What amount of interest expense would be reported on the Year 2 income statement? h. What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement? i. What amount of assets would be reported on the December 31, Year 2, balance sheet? (For all requirements, enter cash outflows as negative amounts.) Show less b. Net cash flow from operating activities c. Interest expense d Total liabilities Retained earnings f Cash flow from financing activities 9 Interest expense h Cash flows from operating activities 1 Amount of assets Reg A
