Below are several transactions for a company for Year 1. a. Issue common stock for cash,...
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Below are several transactions for a company for Year 1. a. Issue common stock for cash, $54,000. b. Purchase building and land with cash, $39,000. c. Provide services to customers on account, $7,400. d. Pay utilities on building, $1,200. e. Collect $5,400 on account from customers. f. Pay employee salaries, $9,400. g. Pay dividends to stockholders, $4,400. Required: 1. For each transaction, determine the amount of cash flows. If cash is involved in the transaction, indicate whether the company should classify it as operating, investing, or financing in a statement of cash flows. (Enter N/A if the question is not applicable to the statement. List cash outflows as negative amounts.) Transaction Issue common stock for cash. Purchase building and land with cash. Provide services to customers on account. Pay utilities on building. Collect cash from customer on account. Pay employee salaries. Pay dividends to stockholders Collect Cash from Customers on Account Pay Employee Salaries Pay Utilities on Building Purchase Building and Land with Cash Issue Common Stock for Cash Pay Dividends to Stockholders Net cash flows for the year Cash Flows Cash balance $ S 10,700 S S $ S S S 2. Calculate net cash flows for the year. (List cash outflows as negative amounts.) 54,000 Financing (39,000) Investing 0 N/A Operating, Investing or Financing (1,200) Operating 5,400 Operating (9,400) Operating (4,400) Financing $ $ 4,400 (8,400) (700) (29,000) 44,000 (3,400) 3. Assuming the balance of cash on January 1, Year 1, equals $4,800, calculate the balance of cash on December 31, Year 1. 6,900 Below are several transactions for a company for Year 1. a. Issue common stock for cash, $54,000. b. Purchase building and land with cash, $39,000. c. Provide services to customers on account, $7,400. d. Pay utilities on building, $1,200. e. Collect $5,400 on account from customers. f. Pay employee salaries, $9,400. g. Pay dividends to stockholders, $4,400. Required: 1. For each transaction, determine the amount of cash flows. If cash is involved in the transaction, indicate whether the company should classify it as operating, investing, or financing in a statement of cash flows. (Enter N/A if the question is not applicable to the statement. List cash outflows as negative amounts.) Transaction Issue common stock for cash. Purchase building and land with cash. Provide services to customers on account. Pay utilities on building. Collect cash from customer on account. Pay employee salaries. Pay dividends to stockholders Collect Cash from Customers on Account Pay Employee Salaries Pay Utilities on Building Purchase Building and Land with Cash Issue Common Stock for Cash Pay Dividends to Stockholders Net cash flows for the year Cash Flows Cash balance $ S 10,700 S S $ S S S 2. Calculate net cash flows for the year. (List cash outflows as negative amounts.) 54,000 Financing (39,000) Investing 0 N/A Operating, Investing or Financing (1,200) Operating 5,400 Operating (9,400) Operating (4,400) Financing $ $ 4,400 (8,400) (700) (29,000) 44,000 (3,400) 3. Assuming the balance of cash on January 1, Year 1, equals $4,800, calculate the balance of cash on December 31, Year 1. 6,900
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Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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