By analyzing the interrelationships among the financial statements, fill in the
ID: 2330639 • Letter: B
Question
By analyzing the interrelationships among the financial statements, fill in the proper amounts for (a) through (s). If your answer is zero enter "0".
By analyzing the interrelationships among the financial statements, fill in the proper amounts for (a) through (s). If your answer is zero enter "0".
a. Fees earned $ b. Utilities expense $ c. Net income $ d. Retained earnings, December 1, 20Y4 $ e. Less dividends $ f. Net income minus dividends $ g. Retained earnings, December 31, 20Y4 $ h. Cash $ i. Capital stock $ j. Retained earnings $ k. Total stockholders' equity $ l. Total liabilities and stockholders' equity $ m. Net cash flows from operating activities $ n. Cash received from notes payable $ o. Total cash received from financing activities $ p. Net cash flows from financing activities $ q. Net increase in cash $ r. December 1, 20Y4, cash balance $ s. December 31, 20Y4, cash balance $Explanation / Answer
Income statement $ $ Fees earned (a) 125000 (67500+57500) Operating expenses: Wages expenses 33120 Rent expenses 18000 Utilities expenses (b) 10620 (67500-33120-18000-1800-3960) Interest expenses 1800 Miscellaneous expenses 3960 Total operating expenses 67500 Net income © 57500 (From retained earnings statement-Net income for december) Retained earnings statement $ $ Retained earnings, December 1,20Y4 (d) 0 (45500-45500) Net income for December 57500 Less: Dividends € 12000 45500 (f) (From Statement of cashflows-Cash dividends) Retained earnings, December 31,20Y4 (g) 45500 (From Balance sheet-Retained earnings) Balance sheet $ $ Assets Cash (h) 50500 (225500-175000) Land 175000 Total assets 225500 Liabilities Notes payable 105000 Stockholder's equity Capital stock (i) 75000 (From Statement of cashflows-Cash received from sale of capital stock,Since it is the first year of operation) Retained earnings (j) 45500 (120500-75000) Total stockholder's equity (k) 120500 (225500-105000) Total liabilities and Stockholder's equity (l) 225500 (Total liabilities and Stockholder's equity=Total assets) Statement of cashflows $ $ $ Cashflows from operating activities: Cash received from customers 125000 Deduct cash payment for expenses 67500 Net cashflows from operating activities (m) 57500 (125000-67500) Cashflows used in investing activities: Cash payment for purchase of land -175000 Cashflows from financing activities: Cash received from sale of capital stock 75000 Cash received from issuing notes payable (n) 105000 180000 (o) (From balance sheet-Notes payable) Deduct cash dividends 12000 Net cashflows from financing activities (p) 168000 (180000-12000) Net increase in cash (q) 50500 (57500-175000+168000) December 1,20Y4, Cash balance ® 0 (50500-50500) (It indicates that it is the first year of operation) December 31,20Y4, Cash balance (s) 50500 From (h)
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