Service revenue for the year = $80,000. of this amount, $70,000 is collected during the year and $10,000 is expected to be collected next year. salaries expense for the year = $40,000. of this amount, $35,000 is paid during the year and $5,000 is expected to be paid next year. advertising expense for the year = $10,000. all of this amount is paid during the year. supplies expense for the year = $4,000. no supplies were purchased during the year. utilities expense for the year = $12,000. of this amount, $11,000 is paid during the year and $1,000 is expected to be paid next year. cash collected in advance from customers for services to be provided next year (deferred revenue) = $2,000. required: calculate operating cash flows. (list cash outflows as negative amounts.)
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Ответ:
Net Cash Inflow from Operating Activities = $16,000
Explanation:
In the given information, it is not provided that cash is paid or not for Supplies, thus, assumed it was paid at the time of acquisition, and not in the current period when it is only charge to expense.
In that case, Cash generated from operating activities using direct method, shall be:
Cash flow from Operating Activities
Cash revenue collected = $70,000
Cash collected in advance = $2,000
Total cash inflow = $72,000
Cash paid for salaries = - $35,000
Cash paid for advertising expense = - $10,000
Cash paid for utilities = - $11,000
Total Cash outflow = - $56,000
Net Cash Inflow from Operating Activities = $16,000
Ответ:
Many of the poorer people had to take large loans to keep their farms functioning while they were off fighting in the revolution. When the war ended, they had no money to pay the creditors back, who began pressing for the money.
I hope this helps.