3 9 A Amounts billed to clients for services rendered Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 0 1 Additional information: 2 Utility costs year 1 3 Liabilities at the end of year 2 4 Anticipated bad debts on receivables 5 Insurance policy term 6 7 Required: 8 2 3 4 Listed below are several transactions that took place during the first two years of operations for an accounting firm: 91. Calculate the net operating cash flow for years 1 and 2. 0 2. Calculate the amount of receivables from clients that the firm would 1 show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. B Insurance Net income (loss) Year 1 $260,000 208,000 104,000 62,000 64,000 2 3 3. Prepare an income statement for each year according to the accrual accounting model. 4 Income Statements - Accrual basis 5 6 Revenues 7 Expenses: 8 Salaries 9 Utilities 0 1 Year 1 ($22,000) Year 2 $325,000 293,000 130,000 87,000 0 50,000 0 0 4 Year 2 $76,000 Year 1 Year 2 $260,000 $325,000 D 104,000✔ 130,000 50,000 years I
3 9 A Amounts billed to clients for services rendered Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 0 1 Additional information: 2 Utility costs year 1 3 Liabilities at the end of year 2 4 Anticipated bad debts on receivables 5 Insurance policy term 6 7 Required: 8 2 3 4 Listed below are several transactions that took place during the first two years of operations for an accounting firm: 91. Calculate the net operating cash flow for years 1 and 2. 0 2. Calculate the amount of receivables from clients that the firm would 1 show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. B Insurance Net income (loss) Year 1 $260,000 208,000 104,000 62,000 64,000 2 3 3. Prepare an income statement for each year according to the accrual accounting model. 4 Income Statements - Accrual basis 5 6 Revenues 7 Expenses: 8 Salaries 9 Utilities 0 1 Year 1 ($22,000) Year 2 $325,000 293,000 130,000 87,000 0 50,000 0 0 4 Year 2 $76,000 Year 1 Year 2 $260,000 $325,000 D 104,000✔ 130,000 50,000 years I
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter16: Statement Of Cash Flows: Another Look
Section: Chapter Questions
Problem 18P
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