acc201WA1 - E 1-1 Pete, Pete, and Roy Operating Cash Flow...

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E 1-1 Pete, Pete, and Roy Operating Cash Flow Year 1 Year 2 Cash collected $160,000 $190,000 Cash disbursements: Salaries (90,000) (100,000) Utilities (30,000) (40,000) Purchase of insurance policy (60,000 ) - 0 - Net operating cash flow $(20,000 ) $ 50,000 Pete, Pete, and Roy Income Statements Year 1 Year 2 Revenues $170,000 $220,000 Expenses: Salaries (90,000) (100,000) Utilities (35,000) (35,000) Insurance (20,000 ) (20,000 ) Net Income $ 25,000 $ 65,000
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Year 1 : Amount billed to customers $170,000 Less: Cash collected (160,000 ) Ending accounts receivable $ 10,000 Year 2: Beginning accounts receivable $ 10,000 Plus: Amounts billed to customers 220,000 $230,000 Less: Cash collected (190,000 ) Ending accounts receivable $ 40,000 Research Case 1-3 1. The mission of the FASB is to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports. That mission is accomplished through a
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acc201WA1 - E 1-1 Pete, Pete, and Roy Operating Cash Flow...

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