Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Stickley, Inc. went into business on August 1, 2020. During the remaining five months of 2020, Stickley had the following transactions: Aug. 1, 2020 -
Stickley, Inc. went into business on August 1, 2020. During the remaining five months of 2020, Stickley had the following transactions: Aug. 1, 2020 - Issued stock for a total of $10,000. Sept. 1, 2020 - Borrowed $12,000 from the bank. Stickley will make no payments on this loan until Sept. 1, 2022, and at that time, it will owe $12,600. Oct. 1, 2020 - Paid $6,000 to rent a building for six months. Oct. 1, 2020 - Paid $10,000 for equipment which is expected to last for five years and then be worthless. Oct. 18, 2020 - Purchased $8,000 of inventory on account. Nov. 5, 2020 - Sold $2,500 of inventory for $10,000 in cash. Nov. 12, 2020 - Bought a segment of land for $4,000 in cash. Dec. 1, 2020 - Paid employees $2,000. Dec. 14, 2020 - Sold $1,000 of inventory for $5,500 on account. Dec. 17, 2020 - Paid accounts payable. Dec. 18, 2020 - Sold one-half of land for $3,000 in cash. Dec. 21, 2020 - Received a utility bill for $ 1,400, which will be paid in January. Dec. 31, 2020 - Paid a dividend of $4,000. How much were Stickley's operating cash flows during 2020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started