Heads Up Company was started several years ago by two hockey instructors. The co

Question

Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment 5 6.180 4.180 1.730 4,900 890 5,390 1.480 S 10.980 9.550 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 510 1.600 4,900 750 500 4,900 S 10.980 9.550 Income Statement Sales Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income $ 39.700 5 37.200 240 5 1.060 Additional Data: a. Bought new hockey equipment for cash, S490 b. Borrowed S1,100 cash from the bank during the year c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash

Explanation / Answer

Cash received from Customers Opening Balance $1,730 CY Sales $39,700 Closing Balance ($890) Cash received from Customers $40,540 Cash paid to Employees Opening Balance $750 CY Expense $37,200 Closing Balance ($510) Cash paid to Employees $37,440 Cash flow Statement for CY ended December 31 Operating Activities Amount Cash received from Customers $40,540 Cash Paid to Employees ($37,440) Cash Paid to Suppliers ($490) Cash provided by operating activities $2,610 Less: Income taxes ($1,200) Cash flow from Operating activities $1,410 Investing Activities Purchase of Equipment ($490) Cash flow from Investing activities ($490) Financing Activities Proceeds from issue of notes $1,100 Cash flow from Financing activities $1,100 Net increase / decrease in cash $2,020 Opening Cash $4,160 Closing Cash $6,180

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.