Question

eBook Calculator Reconcile Net Income and Net Cash Flows from Operations Alex Vera organized Succulent Express at the beginning of February 2014. During February, Succulent Express entered into the following transactions: a. Terry Mason invested $32,250 in Succulent Express in exchange for common stock. b. Paid $4,200 on February i for an insurance premium on a one-year policy. C. Purchased supplies on account, $1,740. d. Received fees of $46,130 during February e. Paid expenses as follows: wages, $15,000; rent, $2,500; utilities, $1,250; and miscellaneous, $1,375. f. Paid dividends of $8,985. There was $1,566 of supplies on hand as of February 28. Assume that adjusting entries for usage of supplies and expiration of prepaid insurance were recorded on February 28, 2014. Based on the information above, determine the net cash flow from operating activities as of February 28, 2014.

Answer 1

Calculation of Net Cash flow from operation

	Received Fees		$46,130.00
Less:	Insurance Premium	4,200.00
	( Assumed for Revenue Income)
Less:	Purchase of supplies	1,740.00
Less:	wages	15,000.00
Less:	Rent	2,500.00
Less:	utilities	1,250.00
Less:	miscellaneous	1,375.00	$26,065.00
	Net Cash Flow from operation	$20,065.00

Since Opening and Closing Balance of Utilites are not available hence no adjustment entry has been made.

I have Calculated Cash flow from operation based on transations incurred during the year.

Net Income Will be as mwntioned below

Net Cash Flow from Operation : $20,065

Add : Closing Stock of Utility :$ 1,566

Add : Dividends : $ 8985

Net Income During the year : 30,616