Rockman Associates has reported the following selected account balances on its most recent balance sheet.
Account and balance Anticipated future event and cash flow
a. Accounts receivable, $12,000 $12,000 of cash should be received from customers during the next fiscal year.
This will appear in the operating activities section.
b. Prepaid insurance, $22,000
c. Merchandise, $50,000
d. Treasury stock, $33,000
e. Accounts payable, $6,500
f. Machinery, $92,000
g. Notes payable, long-term, $88,000
h. Unearned revenue, $10,000
i. Taxes payable, $7,800
j. Retained earnings, $56,000
For each item, describe the anticipated future event and cash flow (if any) that is expected to occur and in which section of a future statement of cash flows it will appear. The first item is completed as an example.