Arlington Service Company began the year 2014 with cash of $55,900. In addition to earning a net

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Arlington Service Company began the year 2014 with cash of $55,900. In addition to earning a net income of $32,500 and making cash withdrawals of $19,500, Arlington Service borrowed $78,000 from the bank and purchased equipment with $117,000 of cash. Also, Accounts Receivable increased by $7,800, and Accounts Payable increased by $11,700.
Determine the amount of cash on hand at December 31, 2014, by preparing a statement of cash flows similar to the one in Exhibit 9.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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