Question

Question 1: At the end of 2010, Sherwood Company had retained earnings of $18,290. During 2011, Sherwood had revenues of $837,600 and expenses of $791,700, and paid cash dividends in the amount of $38,680. 1. Determine the amount of Sherwood's retained earnings at December 31, 2011

Answer please

Question 2 :

Statement of Cash Flows

Walters Inc. began operations on January 1, 2011. The following information relates to Walters' cash flows during 2011.

Cash received from owners	$201,500
Cash paid for purchase of land and building	125,700
Cash paid for advertising	34,200
Cash received from customers	139,900
Cash paid to purchase machine	31,600
Cash paid to employees for salaries	46,400
Cash paid for dividends to stockholders	37,200
Cash paid for supplies	28,700

1. Calculate the cash provided/used for each cash flow category. If a net amount is negative (a cash outflow), enter your answer as a negative number.

Net cash provided by operating activities	$
Net cash used by investing activities	$
Net cash provided by financing activities	$

Question 3:

achary Corporation's December 31, 2010 balance sheet included the following amounts:

Cash	$ 17,400
Retained earnings	103,500

Zachary's accountant provided the following data for 2011:

Revenues		$ 673,900		Cash inflow from operating activities		$ 857,100
Expenses		587,100		Cash outflow for investing activities		(994,500)
Dividends		34,100		Cash inflow from financing activities		156,600

Calculate the amount of cash and retained earnings at the end of 2011.

Answer 1

Answer 1:

Retained earnings at year end = Opening retained earning + Net Profit – Cash Dividend

In the given question, we have been provided the details as below:

Opening retained earnings = $18,290
Revenue = $837,600
Expenses =$791,700
Cash Dividends =$38,680

Therefore, Net profit = Revenue-Expenses = $837,600-$791700=$45,900

Now, Retained earnings at year end will be,

Putting details in the formulae-

Sherwood's Retained earnings at year end as on 31 Dec 2011 = $18290+$45900-$38680 = $25,510

Answer 2:

Cash flow from operating activities will include:

Cash paid for advertising	($ 34,200)
Cash received from customers	$ 139,900
Cash paid to employees for salary	($ 46,400)
Cash paid for supplies	($ 28,700)
Cash paid for dividends	($ 37,200)
Total of cash flow from operating activities	($ 6600)
Cash paid for purchase of land	($125,700)
Cash paid to purchase of machine	($31,600)
Total of cash flows from Investing activities	($157,300)
Cash received from customers	$201,500
Total of cash flows from Financing activities	$201,500

Answer 3:

Basis the given information,

Opening cash balance = $ 17,400

Opening retained earnigs = $ 103,500

Net profiit = Revenues – Expenses = $ 673,900-$587,100 =$86800

Net cash flow = Cash flow from Operating+Investing and Financing actiivities:

                                = $ 857,100+($994,500)+$156,600= @19,200

Therefore, Retained earnings at the end of 2011 = [$ 103,500+$86800-$34100]= $156200
Also, cash balance = $17,400+ $19,200-$34100= $2500

Note: It has been assumed that expenses were not paid in cash.