Assume the following income statement and balance sheet information: Service revenue (all cash) Operating expenses Salaries...
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Assume the following income statement and balance sheet information: Service revenue (all cash) Operating expenses Salaries (all cash) Net income Current assets Cash Short-term invest. Liabilities Borrowings Stockholders' equity Common stock Retained earnings $175 85 $90 2020 $1,250 100 $1,350 600 200 550 750 $1,350 2019 $1,600 200 $1,800 1,000 300 500 800 $1,800 Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non- current. No gain or loss occurred when common stock was repurchased. Required: 1. Calculate cash flow from operating activities. 2. Prepare the 2020 statement of changes in equity. 3. Calculate cash flow from financing activities. 4. (Appendix) Prepare a cash flow table. Show that cash effects net to a $450 outflow. Assume the following income statement and balance sheet information: Service revenue (all cash) Operating expenses Salaries (all cash) Net income Current assets Cash Short-term invest. Liabilities Borrowings Stockholders' equity Common stock Retained earnings $175 85 $90 2020 $1,250 100 $1,350 600 200 550 750 $1,350 2019 $1,600 200 $1,800 1,000 300 500 800 $1,800 Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non- current. No gain or loss occurred when common stock was repurchased. Required: 1. Calculate cash flow from operating activities. 2. Prepare the 2020 statement of changes in equity. 3. Calculate cash flow from financing activities. 4. (Appendix) Prepare a cash flow table. Show that cash effects net to a $450 outflow.
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Answer rating: 100% (QA)
1 2 3 Collection from sale Exp paid 115 85 Cash flow from operating activities 90 s... View the full answer
Related Book For
Accounting Introduction To Financial Accounting
ISBN: 9781517089719
1st Edition
Authors: Henry Dauderis, David Annand
Posted Date:
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