Business for its first year according to the cash

Reference no: EM131116904

You started a new business one year ago. You've been very busy dealing with so many problems that you haven't had time to sit down and look at whether you made a profit or not. You haven't run out of cash (which for a start-up venture is quite an accomplishment), but you understand that the sustainability of the business depends on making a profit. The following two summaries present cash flow information for the year and information about two assets and a liability at year-end:

Revenue and Expense Cash Flows For First Year

$558,000 cash receipts from sales

$375,000 cash payments for purchases of products

$340,000 cash payments for other expenses

Two Assets and a Liability at Year-End

$52,000 receivables from customers for sales made to them during the year

$85,000 cost of products in ending inventory that haven't yet been sold

$25,000 liability for unpaid expenses

Compare the profit or loss of your business for its first year according to the cash- and accrual-basis accounting methods. Show in an income statement.

Reference no: EM131116904

Questions Cloud

Compute the speed output torque and power : For a slip of 2.00%, compute the speed, output torque and power, stator current, power factor, and efficiency when the motor is operated at rated voltage and frequency. Neglect the impedance of the source.

The following transactions in relation to his business : Tutorial Anil made the following transactions in relation to his business. Use the accounting equation to show their effect on his assets, liabilities and capital: 1.Started business with cash Rs 50000

What is the role of the family for this person : What health care concerns unique to African Americans does your interviewee describe? How did he or she deal with these issues? Analyze the differences and similarities between past experiences and conditions for African American families today. Ha..

Growth rate of earnings and dividends : A share of the common stock of the company currently sells for 8 times current earnings. management and outside analysts expect the growth rate of earnings and dividends for the company to be 7.5%. Calculate the cost of equity to this firm.

Business for its first year according to the cash : You started a new business one year ago. You've been very busy dealing with so many problems that you haven't had time to sit down and look at whether you made a profit or not.

How has this attachment style affected your past : How has this attachment style also affected your non-romantic relationships? Is your romantic attachment style similar to the attachment style you had with your parents when you were young?

What effect do these subsequent events have on 2010 : What effect do these subsequent events have on 2010 net income?

Give the entries of the bond through december : The bonds yield 10% On October 1, 2015, Titania buys back $120,000 worth of the bonds for $126,000 (includes accrued interest). Give the entries through December 31, 2016.

Determine breakeven total volume of sales and sales volume : Gafat Engineering Ethio Plc manufactures two types of TV sets - LCD and CRT - both having only one model. The LCD and CRT television sets sell for Br 9,000 and Br5,000, respectively. The company sells its products through its own stores and other ..

User Account

All Pages