Q1 For each transaction below, write the net effect on Assets (A), Liabilities (L), Equity (E), Revenues (Rev), Expenses (Exp), Cash flows from operating activities (CFO), Cash flows from investing activities (CFI), and Cash flows from financing activities (CFF). Write 0 for no net effect and use negative numbers to indicate reductions in accounts or cash outflows.

Transaction A L E Rev Exp CFO CFI CFF

1.Pay $100 to cover future rent

2,Purchase $50 of inventory on account

3 Pay $50 to inventory suppliers (owed from previous row)

4 Sell inventory (book value = $20) for $80 cash

5 Recognize expense associated with $100 prepaid rent

6.Issue $200 of shares

Q2.

Assume that the beginning balance of cash was 275. What would the cash balance be after the transactions in the previous problem, assuming no other transactions?