Q5.

Accounting Equation

Inspirational Inc. is a motivational consultingbusiness. At the end of itsaccountingperiod, October 31, 20Y2, Inspirational hasassetsof $605,590 andliabilitiesof $191,370. Using the accounting equation and considering each case independently, determine the following amounts:

a.Stockholders' equity as of October 31, 20Y2.

$

b.Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $95,680 and liabilities increased by $57,530 during 20Y3.

$

c.Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $47,840 and liabilities increased by $16,960 during 20Y3.

$

d.Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $79,940 and liabilities decreased by $30,280 during 20Y3.

$

e.Net income(ornet loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $763,040, liabilities were $124,150, and no additional common stock was issued or dividends paid.

Net income$

Q8.

Nature of Transactions

Teri West operates her own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease instockholders' equity, except transaction (5), affectsnet income.

_{Assets =Liabilities + Stockholders' Equity}

_{Cash + Supplies + Land =Accounts Payable+Capital Stock+Retained Earnings -Dividends+Fees Earned- Expenses Bal. 32,600 4,200 81,500 8,800 44,500 65,000}

_{1. +38,100 38,100}

_{2. -16,300 +16,300}

_{3. -28,400 -28,400}

_{4. +1,600 +1,600}

_{5. -2,200 -2,200}

_{6. -7,800 -7,800}

_{7. -3,300 -3,300}

_{Bal. 16,000 2,500 97,800. 2,600 44,500 65,000 -2,200 38,100 -31,700}

b.What is the amount of the net decrease in cash during the month? Enter decrease as a positive number.

$c.What is the amount of the net increase in stockholders' equity during the month?

$

d.What is the amount of the net income for the month?

$

e.How much of the net income for the month was retained in thebusiness?

$

Q13.

Statement of Cash Flows

A summary of cash flows for Parker Consulting Group for the year ended January 31, 20Y4, follows:

Cash receipts:

Cash received from customers $284,200

Cash received from issuing common stock 49,000

Cash payments:

Cash paid for operating expenses 161,700

Cash paid for land 73,500

Cash paid for dividends 9,800

The cash balance as of February 1, 20Y3, was $30,400.

Prepar a statement of cash flows for Parker Consulting Group for the year ended January 31, 20Y4. Use the minus sign to indicate cash outflows, cash payments and decreases in cash.

Parker Consulting Group

Statement of Cash Flows

For the Year Ended January 31, 20Y4

Cash flows from (used for) operating activities:

Cash received from customers $

Cash paid for operating expenses $

Net cash flows from operating activities $

Cash flows from (used for) investing activities:

Cash paid for purchase of land $

Cash flows from (used for) financing activities:

Cash received from issuing common stock$

Cash paid for dividends $

Net cash flows from financing activities$

Net increase in cash$

Cash balance, February 1, 20Y3 $

Cash balance, January 31, 20Y4 $