As of January 1, Year 2, Room Designs Inc. had a balance of $9,900 in Cash, $3,500

Question:

As of January 1, Year 2, Room Designs Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, Year 2. During the Year 2 accounting period, the company had (1) revenue of $18,100, (2) expenses of $8,300, and (3) dividends of $2,000. Assume that all transactions are cash transactions.
The following accounts and balances represent the financial condition of Room Designs Inc. as of December 31, Year 2.

ROOM DESIGNS INC. December 31, Year 2, Account Balances Acct. Titles for RE = Llabilities + Stockholders' Equity Assets


Required
a. Determine the amount of net cash flow from operating activities.
b. What did the company purchase that resulted in the cash outflow from investing activities?
c. Assume that the net cash inflow from financing activities of $11,000 was caused by three events. Based on the earlier information, identify these events and determine the cash flow associated with each event.
d. Prepare a statement of cash flows.
e. Prepare an income statement, statement of changes in stockholders’ equity, and a balance sheet.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

Question Posted: