Question

Ingals Co. issued $10,000 of common stock when the company was started. In addition, Ingals borrowed $20,000 from the local bank on April 1, 2016. The note had an 8 percent annual interest rate and a one-year term to maturity. Ingals Co. recognized $54,000 of revenue on account in 2016 and $65,000 of revenue on account in 2017. Cash collections from accounts receivable were $46,000 in 2016 and $63,000 in 2017. Ingals Co. paid $27,000 of salaries expense in 2016 and $36,000 of salaries expense in 2017. Ingals Co. paid the loan and interest at the maturity date.
Required
Based on the preceding information, answer the following questions.
a. What amount of net cash flow from operating activities would Ingals report on the 2016 cash flow statement?
b. What amount of interest expense would Ingals report on the 2016 income statement?
c. What amount of total liabilities would Ingals report on the December 31, 2016, balance sheet?
d. What amount of retained earnings would Ingals report on the December 31, 2016, balance sheet?
e. What amount of cash flow from financing activities would Ingals report on the 2016 statement of cash flows?
f. What amount of interest expense would Ingals report on the 2017 income statement?
g. What amount of cash flows from operating activities would Ingals report on the 2017 cash flows statement?
h. What amount of total assets would Ingals report on the December 31, 2017, balance sheet?


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  • CreatedApril 20, 2015
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