The financial statements at the end of Paradise Realty's first month of operations are shown bel PARADISE REALTY Income Statement For the Month Ended November 30, 20Y3 Fees earned $375,000 Operating expenses: Wages expense Rent expense Supplies expense Utilities expense Miscellaneous expense s (a) 67,500 57,375 47,250 16,875 Total operating expenses (271,500) Net income $ (b) PARADISE REALTY Statement of Stockholders' Equity For the Month Ended November 30, 20Y3 Common Stock Retained Earnings Total $0 254,000 Balances, Nov. 1, 20Y3 $0 $0 Issuance of common stock 254,000 Net income Dividends Balances, Nov. 30, 20Y3$254,000 $(e) $334,640 PARADISE REALTY Balance Sheet November 30, 20Y3 Assets Cash $193,975 77,456 Supplies Land Total assets s (9) Liabilities Note payable $ 159,291 Calculator Liabilities Note payable $159,291 Stockholders' Equity Common stock $ (h) Retained earnings Total stockholders' equity 6) Total liabilities and stockholders' equity PARADISE REALTY Statement of Cash Flows For the Month Ended November 30, 20Y3 Cash flows from operating activities: Cash received from customers Deduct cash payments for expenses and payments to creditors Net cash flows from operating activities (189,665) $ (m) Cash flows used for investing activities: Cash payments for acquisition of land (222,500) Cash flows from financing activities: Cash received from issuing common stock $ 254,000 Check My Work All work saved. flows from financing activities: Cash received from issuing common stock Deduct dividends Net cash flows from financing activities ash 254,000 (22,860) Net increase in cash during month Cash as of November 1 Cash as of November 30 Instructions: 1. Would you classify a realty business such as Paradise Realty as a manufacturing, merchandising, or servie business 2. By analyzing the interrelationships among the financial statements, determine the proper amounts for (a) through (o). Enter all am positive numbers. a. Wages expense b. Net income c. Net income for November d. Dividends e. Retained earnings, November 30, 20Y3 f. Land Check My Work 2. By analyzing the interrelationships among the financial statements, determine the proper amounts for (a) through (o). positive numbers. a. Wages expense b. Net income c. Net income for November d. Dividends e. Retained earnings, November 30, 20Y3 f. Land g. Total assets h. Common stock i. Retained earnings j. Total stockholders' equity k. Total liabilities and stockholders' equity I. Cash received from customers m. Net cash flows from operating activities n. Net cash flows from financing activities o. Net cash flow and November 30, 20Y3 cash balance Check My Work
