PLEASE DO ALL PARTS I WILL THUMBS UP

A. Determine net income on an accrual basis. B. Determine net income on a cash basis. Amount in $ Accrual Basis Cash Basis 80,000 65,000 60,000 50,000 Transaction Sales on credit Cost of goods sold on credit Collections from customers Purchase of inventory on credit Payment for purchases of inventory Cash received for issuance of common stock Dividends paid Salary paid to sales clerk Net Income 55,000 30,000 10,000 10,000 Sections of the Cash Flow Statement: 1. a. General rule: changes in current assets and current liabilities b. Also includes: Interest paid on debt, depreciation expense, dividend income. 2. a. General rule: changes in noncurrent assets 3. a. General rule: changes in some noncurrent liabilities and stockholders' equity b. Also includes dividends paid to owners Cash flow categories: Operating? Investing? Or Financing? 1. Purchase of Marketable Securities 2. Payment of dividends 3. Repurchase of company's common stock 4. Sales of merchandise on credit 5. Repayments of long-term debt 6. Payment of income taxes Cash flow categories: Operating? Investing? Or Financing? 1. Purchase of Marketable Securities 2. Payment of dividends 3. Repurchase of company's common stock 4. Sales of merchandise on credit 5. Repayments of long-term debt 6. Payment of income taxes 7. Sales of common stock to investors 8. Sale of a subsidiary 9. Recording depreciation for equipment