Cowboy Ice Cream (CIC) issued $17,000 of common stock when the company was started. In addition, CIC borrowed $50,000 from a local bank on July 1 Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. CIC recognized $79,500 of revenue on account in Year 1 and $93,600 of revenue on account in Year 2. Cash collections of accounts receivable were $64.100 in Year 1 and $74.300 in Year 2. CIC paid $46,000 of other operating expenses in Year 1 and $52,000 of other operating expenses in Year 2. CIC repaid the loan and interest at the maturity date Required a. Organize the information in accounts under an accounting equation b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? c. What amount of interest expense would be reported on the Year 1 income statement? d. What amount of total liabilities would be reported on the December 31, Year 1, balance sheet? e. What amount of retained eamings would be reported on the December 31, Year 1, balance sheet? f. What amount of cash flow from financing activities would be reported on the Year 1 statement of cash flows? 9. What amount of interest expense would be reported on the Year 2 income statement? h. What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement? 1. What amount of assets would be reported on the December 31 Year 2. balance sheet? Complete this question by entering your answers in the tabs below. REGA Rea B to I Organize the information In accounts under an accounting aquation. Enter any decreases to account balances with a minus in Not All cells we rain any Cowboy Ice Cream Company Effect of Events on the Accounting Equation Year 1 and Year 2 Assets Liabitles Stockholders Equity Accounts Notes Interest Cormon Betained Reculate Payable Payable Stock Earnings YAN . 17 000 2009 50.000 50.000 79.500 84 100 + . 79500 - + 81.100 (48000 15001 ReqA Reg B to I + Organize the information in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells will require entry.) Cowboy Ice Cream Company Ettect of Events on the Accounting Equation Year 1 and Year 2 Assets Liabilities Stockholders' Equity Event Accounts Cash Notes Interest Common Retained Receivable Payable Payable Stock Earnings Year 1 1 17,000+ 17,000+ 2 50,000+ 50,000+ 3 + 79,500 79,500 4 64,100 (64 100) 5 (46,000) 6 1,500 End. Bal 85.100 15.400 50,000 1.500+ 17,000 79,500 Year 2 Beg bal 1 + + + + + + 2 3 4 5 0 End, bal 0+ Roq Bol > Complete this question by entering your answers in the tabs below. Reg A Req B to I b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? c. What amount of interest expense would be reported on the Year 1 income statement? d. What amount of total liabilities would be reported on the December 31, Year 1, balance sheet? e. What amount of retained earnings would be reported on the December 31, Year 1, balance sheet? f. What amount of cash flow from financing activities would be reported on the Year 1 statement of cash flows? g. What amount of interest expense would be reported on the Year 2 income statement? h. What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement? 1. What amount of assets would be reported on the December 31, Year 2, balance sheet? (For all requirements, enter cash outflows as negative amounts.) Show less b. Net cash flow from operating activities c. Interest expense d. Total liabilities e Retained earnings Cash flow from financing activities 9 Interest expense h Cash flows from operating activities E Amount of assets
