Question

Heturn to quest Consider the following information: 1. Service Revenue for the year $83,000. Of this amount. $71,500 is collected during the year and $11,500 is expected to be collected next year. 2. Salaries Expense for the year = $43,000. Of this amount. $36,500 is paid during the year and $6.500 is expected to be paid next year. 3. Advertising Expense for the year = $11,500. All of this amount is paid during the year. 4. Supplies Expense for the year $5,500. No supplies were purchased during the year. 5. Utilities Expense for the year $15,000. Or this amount. $12.500 is paid during the year and $2,500 is expected to be paid next year. 6. Cash collected in advance from customers for services to be provided next year Deferred Revenue) - $3,500. Required: 1. Calculate operating cash flows. (List cash outflows as negative amounts.) Answer is complete but not entirely correct. Cash collected from customers for services provided Salaries paid for the year Advertising paid for the year 71,500 (36,500) (11,500) 3. < Prev 3 of 5 !!! Next > A NO 2

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 1) Nm 71500 -36500 -11500 1 Cash Collected from customers for services provided 2 Salaries paid for the year 3 Advertising paid for the year 4 Supplies paid for the year 5 Utilties paid for the year 6 Cash collected in advance from the customers Net operating cash flows 00 OPEN -12500 3500 14500 12 Part 2) 1 Service Revenue for the year 83000 2 Salaries expense for the year -43000 3 Advertisig expense for the year -11500 4 Supplies expense for the year -5500 5 Utilities expense for the year - 15000 6 Deferred revenue Net income 8000 22 Note Since no supplies purchased and no cash has been paid for it, so their will be no cash 2 outflow but expense of $ 5500 will be booked will calculating the net income boot boot boot boot boots boots boot7 cho