f the work you have dohe so tar is correct, you may hot have completed everythin
ID: 2414757 • Letter: F
Question
f the work you have dohe so tar is correct, you may hot have completed everything value: 10.00 points The following transactions pertain to 2015, the first-year operations of Bailey Company. All inventory was started and completed during 2015. Assume that all transactions are cash transactions. 1. Acquired $7,000 cash by issuing common stock. 2. Paid $2,800 for materials used to produce inventory. 3. Paid $1,900 to production workers. 4. Paid $1,300 rental fee for production equipment. 5. Paid $350 to administrative employees. 6. Paid $400 rental fee for administrative office equipment 7. Produced 500 units of inventory of which 450 units were sold at a price of $17.50 each. Required a-1. Prepare an income statement. Answer is complete and correct. BAILEY COMPANY Income Statement for 2015 s 7.875 Cost of goods sold (5,400) $ 2,475 Administrative expense(750) Sales revenue Gross margin Net income s 1,725 a-2. Prepare a balance sheet. Answer is complete and correct. BAILEY COMPANY Balance Sheet As of December 31 Assets s 8,125 CashExplanation / Answer
Note--Only Cash Flow Statement has been Prepared because all other Staements are already Prepared and Found Correct.
Bailey Company
Statement of Cash Flow
for the year ended December 31st
Cash from Operating Activities
Inflow from revenue
$ 7,875.00
Outflow for Administrative expenses
$ -750.00
Outflow For Operating Expenses
$ -5,400.00
Increase in Value of Inventory
$ -600.00
(A)Net Inflow from Operating Activities
$ 1,125.00
Cash flow from Investing Activities
(B)Net Inflow from Investing Activities
$ -
Cash Flow from Financing Activities
Proceeds by issue of Common Stock
$ 7,000.00
(C )Net Inflow from Financing Activities
$ 7,000.00
(A+B+C) Cash Generated During Year
$ 8,125.00
Beginning cash Balance
$ -
Closing cash balance
$ 8,125.00
Cost of 500 Units
Material
$ 2,800.00
Labour Cost
$ 1,900.00
Machinery Cost
$ 1,300.00
Total Cost
$ 6,000.00
No of Units Produced
500 Units
Cost Per unit
$ 12.00
Closing Stock of Goods
50 Units
Value of closing stock at cost
$ 600.00
Cost of Goods sold (6000-600)
5400
Bailey Company
Statement of Cash Flow
for the year ended December 31st
Cash from Operating Activities
Inflow from revenue
$ 7,875.00
Outflow for Administrative expenses
$ -750.00
Outflow For Operating Expenses
$ -5,400.00
Increase in Value of Inventory
$ -600.00
(A)Net Inflow from Operating Activities
$ 1,125.00
Cash flow from Investing Activities
(B)Net Inflow from Investing Activities
$ -
Cash Flow from Financing Activities
Proceeds by issue of Common Stock
$ 7,000.00
(C )Net Inflow from Financing Activities
$ 7,000.00
(A+B+C) Cash Generated During Year
$ 8,125.00
Beginning cash Balance
$ -
Closing cash balance
$ 8,125.00
Cost of 500 Units
Material
$ 2,800.00
Labour Cost
$ 1,900.00
Machinery Cost
$ 1,300.00
Total Cost
$ 6,000.00
No of Units Produced
500 Units
Cost Per unit
$ 12.00
Closing Stock of Goods
50 Units
Value of closing stock at cost
$ 600.00
Cost of Goods sold (6000-600)
5400
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