Hello!

Will you please answer these and show your work? I would like to ensure I'm doing them correctly!

Retailers like K-Mart, T.J. Maxx, and Big Lots, allow their customers to buy goods on layaway plans.Under a layaway arrangement, a customer makes payments to a retailer over time.The retailer holds the selected merchandise until all payments are received.

Company Alpha collected layaway payments from customers and reported revenue as the customers made each payment (as cash was received).Company Beta recorded no revenue until the full purchase price had been paid and the customer took possession of the merchandise.Assume both companies had $30,000 owed by customers for layaways, which was payable in equal monthly payments over a 6 month period from October of Year 1 through March of Year 2 at a total of $5,000 per month.

Determine the amount that will be reported for each of the financial statement items listed below under the two layaway revenue recognition policies for Year 1 and Year 2:

a) Revenue

b) Cash flow from operations

c) Total liabilities

Thank you!