Exercise 2-11A (Algo) Net income versus changes in cash LO 2-2, 2-3, 2-4 In Year 1, Lee Incorporated billed its customers $57.400 for services performed. The company collected $40,100 of the amount billed. Lee Incurred $36,300 of other operating expenses on account, and paid $24,400 of the accounts payable. It acquired $25,000 cash from the issue of common stock and invested $19,000 cash in the purchase of land. Required: (Hint: Identify the six events described in the paragraph and record them in accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. What amount of revenue will Lee report on the Year 1 income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? f. What is the amount of net cash flow from Investing activities? g. What is the amount of net cash flow from financing activities? h. What amounts of total assets, liabilities, and stockholders' equity will be reported on the year-end balance sheet? Accounting Equation Req A to H (Hint: Identify the six events described in the paragraph and record them in accounts under an accounting equation before attempting to answer the questions.) Note: Enter any decreases to account balances with a minus sign. Event 1. Sales on account 2 Collected accounts receivable 3. Incurred expense 4. Paid accounts payable 15 Issue of stock 6. Purchase land Totals LEE INCORPORATED Effect of Events on the Accounts under Accounting Equation Cash Assets Liabilities Stockholders' Equity Accounts Land Receivable Accounts Payable Common Retained Stock Earnings + . + + + + + 0+ Req A to H> 0. Req A to Hi Equation Use the preceding information to answer the following questions: a. What amount of revenue will Lee report on the Year 1 Income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? Note: Enter cash outflows as negative amounts. f. What is the amount of net cash flow from investing activities? Note: Enter cash outflows as negative amounts... g. What is the amount of net cash flow from financing activities? Note: Enter cash outflows as negative amounts. h. What amounts of total assets, liabilities, and stockholders' equity will be reported on the year-end balance sheet? a. Revenue recognized b. Cash flow from revenue c. Net income d. Net cash flow from operating activities f. Net cash flow from investing activities g. Net cash flow from financing activities h. Total assets Total liabilities Total stockholders' equity Amount Hunting Equation Reg A to H Show le