Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Warren Enterprises had the following events during Year 1: The business issued $22,000 of common stock to its stockholders. The business purchased land for $14,000
Warren Enterprises had the following events during Year 1:
- The business issued $22,000 of common stock to its stockholders.
- The business purchased land for $14,000 cash.
- Services were provided to customers for $18,000 cash.
- Services were provided to customers for $7,000 on account.
- The company borrowed $18,000 from the bank.
- Operating expenses of $14,000 were incurred and paid in cash.
- Salary expense of $1,000 was accrued.
- A dividend of $6,000 was paid to the stockholders of Warren Enterprises.
Assuming the company began operations during Year 1, What is the amount of retained earnings as of December 31, Year 1?
a) $25,000
b) $12,000
c) $4,000
d) $3,800
2-
Nelson Company experienced the following transactions during Year 1, its first year in operation.
- Issued $8,800 of common stock to stockholders
- Provided $5,100 of services on account
- Paid $2,300 cash for operating expenses
- Collected $3,300 of cash from accounts receivable
- Paid a $240 cash dividend to stockholders
What is the of net cash flow from operating activities shown on the Year 1 statement of cash flows?
a) $1,000
b) $760
c) $2,800
d) $2,560
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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