financial accounting 8th edition p1-3 (34p)

PI-3 aner.' Explain. Comparing Income with Cash Flow (A Challenging Problem) (API -3) Huang Trucking Company was organized on January l. 2014. At the end of the first quartet months) of operations, the owner prepared a summary of its activities as shown in the first following tabulation: Computation ot 4. a. b. c. d. e. Sununary or Services performed for customers. of Which Sl I ,OOO remained uncollected at the end of the quarter. Cash borrowed from the local bank. S56.000 (one-year note). Small service truck purchased at the end of the quarter to be used in the business for two years starting the next quarter: cost, S12,500 cash. Wages earned by employees, $25.("), of which one-half remained unpaid at the end of the quarter. Service supplies purchased for use in the business, cash. of which $900 were unused (still on hand) at the end of the quarter. I neome C' ash +S66.ooo f: Other operating of which S6,500 remained unpaid at the end of the quarter. Based only on these transactions, compute the following for the quarter: Income (or loss) Cash inflow (or outflow) Required: l. Foreach of the six transactions given in this tabulation, enter what you consider the correct amour" Enter a zero when appropriate. The first transaction is illustrated. 2. For each transaction, explain the basis for your dollar responses.