Question
Green-All Landscaping Company maintains its books on a cash basis. However, the company recently borrowed $140,000 from a local bank, and the bank requires Green-All
Green-All Landscaping Company maintains its books on a cash basis. However, the company recently borrowed $140,000 from a local bank, and the bank requires Green-All to provide annual financial statements prepared on an accrual basis. During the current year the following cash flows were recorded:
Cash collected for: Services to customers | $ 400,000 | |
---|---|---|
Cash paid for: | ||
Salaries | $ 188,000 | |
Supplies | 16,000 | |
Rent | 72,000 | |
Insurance | 6,000 | |
Miscellaneous | 24,000 | 306,000 |
Net operating cash flow | $ 94,000 |
You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities:
January 1 | December 31 | |
---|---|---|
Accounts receivable | $ 44,000 | $ 28,000 |
Prepaid insurance | 1,200 | 1,800 |
Supplies | 2,600 | 4,000 |
Accrued liabilities (for miscellaneous expenses) | 6,000 | 8,400 |
In addition, you learn that the bank loan was dated September 30 of the current year with principal and interest at 8% due in one year. Depreciation on the companys equipment is $9,600 for the year.
Answer in excel
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