Green-All Landscaping Company maintains its books on a cash basis. However, the company recently borrowed $140,000 from
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Green-All Landscaping Company maintains its books on a cash basis. However, the company recently borrowed $140,000 from a local bank, and the bank requires Green-All to provide annual financial statements prepared on an accrual basis. During the current year the following cash flows were recorded:
| Cash collected for: Services to customers | $ 400,000 | |
|---|---|---|
| Cash paid for: | ||
| Salaries | $ 188,000 | |
| Supplies | 16,000 | |
| Rent | 72,000 | |
| Insurance | 6,000 | |
| Miscellaneous | 24,000 | 306,000 |
| Net operating cash flow | $ 94,000 |
You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities:
| January 1 | December 31 | |
|---|---|---|
| Accounts receivable | $ 44,000 | $ 28,000 |
| Prepaid insurance | 1,200 | 1,800 |
| Supplies | 2,600 | 4,000 |
| Accrued liabilities (for miscellaneous expenses) | 6,000 | 8,400 |
In addition, you learn that the bank loan was dated September 30 of the current year with principal and interest at 8% due in one year.
Depreciation on the company’s equipment is $9,600 for the year.Answer in excel
Expert Answer:
GreenAll Landscaping Company Financial Statements Accrual Basis Instructions Download or open a new Excel spreadsheet Create the following worksheets ... View the full answer
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