Travis Dorso- Unit 6 Assignment

Travis Dorso- Unit 6 Assignment - Exercise 12-15 Income...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Exercise 12-15 Income Statement, Statement of Cash Flows(Direct Method) 1)-Income Statement For First Year Grooming service revenue $150,000.00 Expenses Operating expenses $58,000.00 ($80,000 - $10,000 - $12,000 = $58,000) Amortization, patent $10,000.00 ($100,000/10 years = $10,000) Rent, storage building $12,000.00 $80,000.00 Net income $70,000.00 2)- Statement of Cash Flows for First Year Using Direct Method Cash Flows from Operating Activities Cash receipts from: Cash sales $110,000.00 ($150,000 - $40,000 = $110,000) Sales on account $30,000.00 ($40,000 - $10,000 = $30,000) Total cash receipts $140,000.00 Cash payments for: Operating expenses ($58,000.00) Rent, storage building ($12,000.00) Security deposit ($2,000.00) Total cash payments ($72,000.00) Net cash flows from operating activities $68,000.00 Cash Flows from Investing Activities Cash outflows for: Down payment on patent ($20,000.00) ($100,000 x 20% = $20,000) Cash Flows from Financing Activities Cash inflows from: Issuance of common stock $50,000.00 Cash outflows for: Payment of cash dividends ($20,000.00) Net cash flows from financing activities $30,000.00 Net increase in cash $78,000.00 Cash balance, beginning of year $0.00 Cash balance, end of year $78,000.00 Supplemental schedule of noncash investing and financing activities Acquisition of patent in exchange for note payable $80,000.00 3)- Company Generate more or less 4)- Balance Sheet As of End of Year...
View Full Document

This note was uploaded on 01/26/2012 for the course BUSINESS Accounting taught by Professor N/a during the Spring '11 term at Kaplan University.

Page1 / 2

Travis Dorso- Unit 6 Assignment - Exercise 12-15 Income...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online