QUESTION 1

1. Credit sales Cash received from equipment sold Rent paid in advance Purchased supplies on credit Cost of sales Cash sales Collections from accounts receivable Beginning cash balance

   18,000 4,500 840 1,200 21,000 12,000 11,200 800

   Purchase of new computers Proceeds from bank loan Salaries paid Rent expense Suppliers paid Depreciation expense Dividends paid Ending cash balance

   18,600 5,000 6,800 420 960 1,800 6,000 300

   The effect on profits from these transactions is

   		$(20)
   		$(6,820)
   		$14,600
   		$11,180
   		Unable to be calculated from the information given

2.

QUESTION 3

1. Credit sales Cash received from equipment sold Rent paid in advance Purchased supplies on credit Cost of sales Cash sales Collections from accounts receivable Beginning cash balance

   18,000 4,500 840 1,200 21,000 12,000 11,200 800

   Purchase of new computers Proceeds from bank loan Salaries paid Rent expense Suppliers paid Depreciation expense Dividends paid Ending cash balance

   18,600 5,000 6,800 420 960 1,800 6,000 300

   The net cash flow from investing activities of the statement of cash flows prepared from the above information is

   		$(8,100)
   		$(1,000)
   		$4,500
   		$(14,100)
   		$(18,600)

3.

QUESTION 4

1. Cash drawings Loss on sale of equipment Insurance expense Bank loan paid Cost of sales Inventory purchased for cash Collections from accounts receivable Beginning cash balance

   2,200 900 100 4,500 15,000 8,000 16,400 400

   Insurance paid in advance Cash paid for equipment purchased Credit sales Wages paid Accounts payable paid Depreciation expense Cash sales Ending cash balance

   1,200 10,000 18,000 3,800 450 1,400 23,000 9,650

   The effect on profits from these transactions is:

   		$11,900
   		$19,800
   		Unable to be calculated from the information given
   		$11,700
   		$4,800