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Use the following information to answer next 8 questions. Rose opened an Office Cleaning Service company on January 1, 2020. During the year she had

Use the following information to answer next 8 questions. Rose opened an Office Cleaning Service company on January 1, 2020. During the year she had the following transactions.

  1. She started the business with investing $30,000 of her own money (business was organized as corporation)
  2. She purchased $15,000 of furniture and equipment in cash.
  3. She purchased a truck for $28,000 for business use - paid $5,000 in cash and signed a 3-year note for the rest.
  4. She borrowed $20,000 from bank by issuing a 5-year note.
  5. During the year, provided $70,000 services to customers of which $66,000 was collected, the rest was not yet collected as of Dec. 31st.
  6. During the year, she incurred $55,000 of salaries, rent, utilities, and insurance expenses of which $3000 was still not paid as of Dec. 31st.
  7. During the year, she paid $4,000 to bank of which $1200 was for interest and the rest was for payment of the principal of the loan.
  8. During the year, she took $8,000 as dividend (dividends paid to shareholders).
  9. During the year, purchased $2000 of supplies in cash. Only $800 of the supplies was left on Dec. 31st.
  10. She sold $800 of unnecessary equipment in cash at cost.
  11. Depreciation expense for the year was $1,000.
  12. She collected $3,000 from a customer in advance for services to be rendered next year.

  1. Compute net cash flows from operating activities.
  2. Compute net cash flows from investing activities.
  3. Compute net cash flow from financing activities.
  4. Compute total change in cash during the year.
  5. Compute total revenues for the year.
  6. Compute total expense for the year.
  7. Compute net income for the year.
  8. Compute Ann's total equity in business as of Dec. 31st.
  9. Compute total expense for the year.

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