Question

8. The WeBuild Construction Company sold $28 million of buildings in its first year of operations. The company received payments of $16.00 million for these buildings. The company's income statement would report:

Multiple Choice Accounts Receivable of $16.00 million. o Expenses of $12.00 million. Sales Revenue of $16.00 million. Sales Revenue of $28 million.

9.

10.

11.

12.

13.

14.

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Answer 8
Option D.	Sales Revenue of $ 28 million.
Answer 9.1
Income Statement	Amount $
Service Revenue	177,800.00
Total Revenue	177,800.00
Less: Expenses
Salaries & Wages Expense	37,700.00
Office Expense	16,300.00
Utilities Expense	27,100.00
Total Expenses	81,100.00
Income before interest and tax	96,700.00
Less: Interest Expense	31,500.00
Income before tax	65,200.00
Less: Income Tax Expense	12,100.00
Net Income	53,100.00
Answer 9.2
Statement of Retained Earnings	Amount $
Opening balance	16,300.00
Add: Net Income	53,100.00
Less: Dividends	-
Closing Retained Earnings	69,400.00
Answer 9.3
Balance Sheet
Current Assets	Amount $
Cash	124,000.00
Accounts Receivable	42,800.00
Inventory	19,200.00
Prepaid rent	9,000.00
Current Assets	195,000.00
Plant Assets
Equipment	156,700.00
Total Assets	351,700.00
Liabilities
Accounts Payable	65,000.00
Notes Payable	44,300.00
Salaries & Wages Payable	28,000.00
Total Liabilities	137,300.00
Stockholder's Equity
Common Stock	145,000.00
Retained Earnings	69,400.00
Total Stockholder's Equity	214,400.00
Total Liabilities & Stockholder's Equity	351,700.00
Answer 9.4
Cash Flow Direct Method	Amount $	Amount $
Cash Receipts from
Cash Received from customers	177,000.00
Total cash inflows		177,000.00
Cash paid to suppliers and employees	107,200.00
Income Tax paid	13,000.00
Total cash outflows		120,200.00
Net Cash inflow from operating activities		56,800.00
Cash Flow from Investing Activities
Cash paid to purchased long term assets	(72,400.00)
Net Cash outflow from Investing Activities		(72,400.00)
Cash Flow from Financing Activities
Cash from issuing stock	41,000.00
Cash paid to reacquire stock	(47,300.00)
Net Cash inflow form Financing Activities		(6,300.00)
Net Increase in cash		(21,900.00)
Add: Beginning Cash Balance		145,900.00
Ending cash Balance		124,000.00
Purrfect Pets.
Balance Sheet
Current Assets	Amount $
Cash	733,100.00
Accounts Receivable	419,700.00
Inventory	58,450.00
Other Assets	69,450.00
Current Assets	1,280,700.00
Plant Assets
Equipment	119,000.00
Total Assets	1,399,700.00
Liabilities
Accounts Payable	349,700.00
Notes Payable	269,000.00
Total Liabilities	618,700.00
Stockholder's Equity
Common Stock	662,600.00
Retained Earnings	118,400.00
Total Stockholder's Equity	781,000.00
Total Liabilities & Stockholder's Equity	1,399,700.00
Green Thumb Inc.
Answer a
Income Statement	Amount $
Sales Revenue	1,869,800.00
Total Revenue	1,869,800.00
Less: Expenses
Salaries & Wages Expense	725,700.00
Other selling and administrative expense	351,700.00
Advertising and promotion expense	263,400.00
Other expense	123,300.00
Total Expenses	1,464,100.00
Income before interest and tax	405,700.00
Less: Interest Expense	43,990.00
Income before tax	361,710.00
Less: Income Tax Expense	56,590.00
Net Income	305,120.00
Answer b
Statement of Retained Earnings	Amount $
Opening balance	162,900.00
Add: Net Income	305,120.00
Less: Dividends	46,090.00
Closing Retained Earnings	421,930.00