Question
I once again need help in filling in items. Thank you for any assistance! Data: Acquired $550,000 by signing a note payable with a local
I once again need help in filling in items. Thank you for any assistance!
Data:
Acquired $550,000 by signing a note payable with a local bank Sold 25,000 shares of $22 Common Stock for $1,500,000 Purchased Equipment for $300,000 Purchased Inventory on Account - 25,000 Units at $1.15 per unit Sold 15,000 units at $3.50 on Account Record COGS for Sales on Account Collect $70,000 on Account Paid $117,250 of Accounts Payable Purchased Inventory on Account - 170,000 Units at $1.50 per unit Sold 175,000 units at $3.50 on Account Record COGS for Sales on Account Collect $472,500 on Account Paid $218,600 of Accounts Payable Purchased Inventory on Account - 275,000 Units at $1.35 per unit Sold 200,000 units at $3.50 on Account Record COGS for Sales on Account Collect $735,000 on Account Paid $494,150 of Accounts Payable Purchased Inventory on Account - 300,000 Units at $1.15 per unit Paid Sales & Marketing Expenses of $30,000 Paid Operating Expenses of $75,708 Record Wages Payable of $40,000 Paid Product Line Research & Development Expenses of $150,000 Paid Advertising Expenses of $87,500 Made the yearly required payment on the note payable. The note carries a 7% interest rate and requires payments of $50,000 plus interest each December 31. Record first year of depreciation expense on equipment purchased in Year 2 with salvage value of $38,000 & useful life of 7 Yrs Declared a $10,000 cash dividend for stockholders Paid a $10,000 cash dividend for stockholders
Statement of Cash Flows | |||
Year 2 | |||
Cash flows from operating activities | |||
Cash receipts from revenue | $ 1,435,000.00 | ||
Cash payments for expenses | $ (1,013,958.00) | ||
Net cash flow from operating activities | $421,042.00 | ||
Cash flows from investing activities: | |||
Cash payments to purchase equipment | $ 300,000.00 | $300,000.00 | |
Cash flows from financing activities: | |||
Cash receipts from borrowing funds | |||
Cash receipts from issuing common stock | |||
Cash payments to repay borrowed funds | |||
Cash payments for dividends | |||
Net cash flow from financing activities | $ | ||
Net increase/(decrease) in cash | $ | ||
Plus: beginning cash balance | |||
Ending cash balance | $ | ||
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