The following list of accounts was drawn for Tile, Etc., Inc. on December 31, Year 1,...
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The following list of accounts was drawn for Tile, Etc., Inc. on December 31, Year 1, after the closing entries were posted: Account Title Cash Accounts receivable $135,000 130,000 Allowance for doubtful accounts 20,500 Inventory 435,000 Accounts payable 100,000 Common stock 475,000 Retained earnings 104,500 Tile, Etc. had the following transactions in Year 2: 1. Purchased merchandise on account for $605,000. 2. Sold merchandise that cost $445,000 for $940,000 on account. 3. Sold for $270,000 cash merchandise that had cost $170,000. 4. Sold merchandise for $215,000 to credit card customers. The merchandise had cost $106,000. The credit card company charges a 3 percent fee. 5. Collected $670,000 cash from accounts receivable. 6. Paid $635,000 cash on accounts payable. 7. Paid $150,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4). 9. Loaned $85,000 to J. Parks. The note had an 6 percent interest rate and a one-year term to maturity 10. Wrote off $8,000 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 2 (see item 9). 02:16:31 Req A Req B1 Req B2 Req B3 Req B4 Prepare a statement of cash flows for Year 2. (Cash outflows should be indicated with a minus sign.) TILE, ETC., INC. Statement of Cash Flows For the Year Ended December 31, Year 2 Book Cash flows from operating activities Print eferences Inflow from customers Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net change in cash Ending cash balance $ 0 O 0 $ 0 The following list of accounts was drawn for Tile, Etc., Inc. on December 31, Year 1, after the closing entries were posted: Account Title Cash Accounts receivable $135,000 130,000 Allowance for doubtful accounts 20,500 Inventory 435,000 Accounts payable 100,000 Common stock 475,000 Retained earnings 104,500 Tile, Etc. had the following transactions in Year 2: 1. Purchased merchandise on account for $605,000. 2. Sold merchandise that cost $445,000 for $940,000 on account. 3. Sold for $270,000 cash merchandise that had cost $170,000. 4. Sold merchandise for $215,000 to credit card customers. The merchandise had cost $106,000. The credit card company charges a 3 percent fee. 5. Collected $670,000 cash from accounts receivable. 6. Paid $635,000 cash on accounts payable. 7. Paid $150,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4). 9. Loaned $85,000 to J. Parks. The note had an 6 percent interest rate and a one-year term to maturity 10. Wrote off $8,000 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 2 (see item 9). 02:16:31 Req A Req B1 Req B2 Req B3 Req B4 Prepare a statement of cash flows for Year 2. (Cash outflows should be indicated with a minus sign.) TILE, ETC., INC. Statement of Cash Flows For the Year Ended December 31, Year 2 Book Cash flows from operating activities Print eferences Inflow from customers Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net change in cash Ending cash balance $ 0 O 0 $ 0
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