Issa Manufacturing Company was started on January 1, 2014, when it acquired $86,

Question

Issa Manufacturing Company was started on January 1, 2014, when it acquired $86,000 cash by issuing common stock. Issa immediately purchased office furniture and manufacturing equipment costing $10,000 and $34,000, respectively. The office furniture had a seven-year useful life and a zero salvage value. The manufacturing equipment had a $3,200 salvage value and an expected useful life of four years. The company paid $11,600 for salaries of administrative personnel and $15,300 for wages to production personnel. Finally, the company paid $9,760 for raw materials that were used to make inventory. All inventory was started and completed during the year. Issa completed production on 4,200 units of product and sold 3,220 units at a price of $15 each in 2014. (Assume that all transactions are cash transactions.)

Issa Manufacturing Company was started on January 1, 2014, when it acquired $86,000 cash by issuing common stock. Issa immediately purchased office furniture and manufacturing equipment costing $10,000 and $34,000, respectively. The office furniture had a seven-year useful life and a zero salvage value. The manufacturing equipment had a $3,200 salvage value and an expected useful life of four years. The company paid $11,600 for salaries of administrative personnel and $15,300 for wages to production personnel. Finally, the company paid $9,760 for raw materials that were used to make inventory. All inventory was started and completed during the year. Issa completed production on 4,200 units of product and sold 3,220 units at a price of $15 each in 2014. (Assume that all transactions are cash transactions.)

ber 31, 2014, balance (Round your answer to the nearest dollar amount.) Total asset g. Determine the amount of net cash flow from operating activities that would appear on the December 31, 2014 statement of cash flows. (List cash outflow as negative amount.) Operating activities h. Determine the amount of net cash flow from investing activities that would appear on the December 31, 2014 statement of cash flows. (List cash outflow as negative amount.) Investing activities

Explanation / Answer

f.

g.

h.

Trial Balance

Total Assets 98271

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