$3)$ Transactions analysis question $(40$ points, $4$ points for each correct answer$)$

$$

The ending balance sheets for Bothaways, Inc., a merchandising firm, in $2020$ and $2019($the amount of the contra asset is in parentheses$)$ are:

$$

Balance Sheets

$2020$

$2019$

Assets:

$$

$$

$$ Cash

$18$

$6$

$$ Accounts receivable

$22$

$14$

$$ Prepaid rent

$4$

$8$

$$ Inventory

$16$

$14$

$$ Gross Property, plant, and equipment

$100$

$100$

$$ Less Accumulated depreciation

$(50)$

$(40)$

$$ Net Property, plant, and equipment

$50$

$60$

$$ Total Assets

$110$

$102$

$$

$$

$$

Liabilities:

$$

$$

$($Trade$)$ Accounts payable

$18$

$20$

$$ Unearned sales revenue

$5$

$10$

$$ Wages payable

$30$

$20$

$$ Dividends payable

$3$

$5$

$$ Total liabilities

$56$

$55$

$$

$$

$$

Owners$$ equity:

$$

$$

$$ Contributed capital

$20$

$20$

$$ Retained earnings

$34$

$27$

$$ Total Owners$$ equity

$54$

$47$

$$

A partial income statement for Bothaways in $2020($the amounts of expenses are in parentheses$)$ is:

$$

Income Statement

$2020$

Sales revenue

$63$

Less Cost of goods sold

c$=?$

Less Wage expense

$(15)$

Less Rent expense

f$=?$

Less Depreciation expense

$?$

$$ Net income

$?$

$$

$$

A partial cash flow statement for Bothaways in $2020($the amounts of expenditures are in parentheses$)$ are:$$

$$

Cash Flow Statement

$2020$

Collections from customers

b$=?$

Less Payments to suppliers

$(25)$

Less Payments to employees

d$=?$

Less Payments for rent

$(5)$

$$ Operating cash flow

e$=?$

$$

$$

Less Dividend payments

$?$

$$ Financing cash flow

$?$

$$

$$

Net cash flow

a$=?$

$$

Required: Bothaways did not acquire any Property, plant, and equipment during $2020.$ All line items with non$-$zero values are presented on each of the financial statements. Answer the following questions.

$$

a$)$ What is net cash flow?

$$

b$)$ What are collections from customers?

$$

c$)$ What is cost of goods sold?

$$

d$)$ What are payments to employees?

$$

e$)$ What is operating cash flow?

$$

f$)$ What is rent expense?

$$

g$)$ What is depreciation expense?

$$

h$)$ What is net income?

$$

i$)$ What are dividends declared?

$$

j$)$ What are dividends paid?

$$

Extra Credit $(4$ points$)$: There are two distinct ways to solve for dividends paid in part j$.$ Calculate dividend paid the way other than the one you used above to solve for it$.3)$ Transactions analysis question $(40$ points, $4$ points for each correct answer$)$

The ending balance sheets for Bothaways, Inc., a merchandising firm, in $2020$ and $2019($the amount of the contra asset is in parentheses$)$ are:

A partial income statement for Bothaways in $2020($the amounts of expenses are in parentheses$)$ is:

A partial cash flow statement for Bothaways in $2020($the amounts of expenditures are in parentheses$)$ are:

Required: Bothaways did not acquire any Property, plant, and equipment during $2020.$ All line items with non$-$zero values are presented on each of the financial statements. Answer the following questions.

a$)$ What is net cash flow?

b$)$ What are collections from customers?

c$)$ What is cost of goods sold?

d$)$ What are payments to employees?

e$)$ What is operating cash flow?

f$)$ What is rent expense?

g$)$ What is depreciation expense?

h$)$ What is net income?

i$)$ What are dividends declared?

j$)$ What are dividends paid?

Extra Credit $(4$ points$)$: There are two distinct ways to solve for dividends paid in part j $.$ Calculate dividend paid the way other than the one you used above tolsolve for it$.$