Year 2015

After tax returns were filed ASKnow! needs to compile cash flows and relevant accrual information

Description

2015 (Cash Flows)

REVENUES

$182,000

ASKnow billings totaled $30,000, and were paid by the businesses within 15 days of the following month.

EXPENSES

Food costs By year-end, only one week of food costs remained unpaid, totaling $9,000

$60,000

Supply costs Small office items paid with petty cash.

$4,800

Utilities At the end of the year, one month of electricity, telephone, and water remained unpaid.

$8,000

Employee wages

These costs were kept fairly low one week of wages ($1,400) remained due.

$44,000

Licenses

April 1, 2015

$900

Insurance

A comprehensive insurance policy was purchased on April 1, 2015. The policy covered loss due to theft, fire, or storm damage. The policy also covered business-related risks such as lawsuits arising from customer injury. This policy covers three years.

$18,000

Income taxes income taxes would be paid on April 15, at a rate of 15%.

Owner compensation Withdrawl's for owners considered dividends, owners owned all shares.

$25,000

Depreciation Depreciation expense for all assets placed in service begins with the first full month of operation (e.g. nine months for those assets placed in service during 2015)

Communication equipment	$1,800
Office furniture and fixtures	$2,700

This equipment was expected to have a useful life of three years.

Required

1. Prepare an Income Statement, Balance Sheet, Statement of Stockholders Equity, Statement of Cash Flows for ASKnow as of December 31, 2015