User Account

All Pages

Statements of cash flow different for the two businesses

Assignment Help Accounting Basics
Reference no: EM13933945

The following information is available for two different types of businesses for the 2013 accounting period. Blake Consulting is a service business that provides consulting services to small businesses. University Book Mart is a merchandising business that sells books to college students. 

Data for Blake Consulting: 

1. Borrowed $80,000 from the bank to start the business. 
2. Performed services for clients and collected $60,000 cash. 
3. Paid salary expense of $38,400. 

Data for University Book Mart: 

1. Borrowed $80,000 from the bank to start the business. 
2. Purchased $38,000 of inventory for cash.
3. Inventory costing $33,600 was sold for $60,000 cash. 
4. Paid $4,800 cash for operating expenses. 

Required: 

a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies. 
b. What is different about the income statements of the two businesses? 
c. What is different about the balance sheets of the two businesses? 
d. How are the statements of cash flow different for the two businesses?

Reference no: EM13933945

Questions Cloud

Enter the following headings for the horizontal statements : Enter the following headings for the horizontal statements model onto a blank spreadsheet.
Contractor on a standard-form building contract : "Although not essential, it is common practice when procuring a building to appoint the contractor on a standard-form building contract."(Murdoch J and Hughes W (2008) p101).
What does the us-epa consider to be hazardous waste : Write a 1200-1500 word report on the following: What does the US-EPA consider to be hazardous waste? Are there any discrepancies in the regulations?
Finding a comprehensive treatment program for patients : Finding a comprehensive treatment program for patients suffering from insomnia when traditional psychotherapy and or medications is of no help.
Statements of cash flow different for the two businesses : Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.
The time of the american revolution : Part I: First, put yourself into the time of the American Revolution. What role would you play in the events - for example, a leader, a rebel, a supporter, an artist? You get to decide. How will you respond to the American Revolutionary efforts?
Problem regarding the australian consumer law : In your answers, DO NOT discuss liability under the law of contract or sections 18-29 of the Australian Consumer Law (Cth).
Building a critical skill : Post 1. Review "Building a Critical Skill: Managing Your Time" on page 225. Which of these techniques do you already use? What challenges do you have in managing your time and how do/have you overcome them? What skills have you learned since becoming..
Principles of contract law : Are there any exclusion or limitation clauses? If so identify and explain using the principles of contract law whether the clauses would be valid. When submitting your report please include the brochure.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which form cash flow stream or lump-sum amount preferred

Given the cash flow stream and lump-sum amounts associated with each, and assuming a 9 percent opportunity cost, which alternative (X or Y) and in which form (cash flow stream or lump-sum amount) would you prefer?

  Record the preceding transaction in the horizontal statement

Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first event is shown as an exampl..

  Is rental real estate subject to the passive loss

is rental real estate subject to the passive loss limitations? are there any important exceptions? please explain the

  Difference of expect and accumulate post retirement benefit

What is different about the expected post retirement benefit obligation and the accumulated post retirement benefit obligation?

  Tthe mirror image of that for bond discounts

The accounting for bond premiums is not the mirror image of that for bond discounts.

  Branch company a building materials supplier has 18000000

branch company a building materials supplier has 18000000 of notes payable due april 12 2010. at december 31 2009

  At the 05 level test the claim that the proportion of

at the .05 level test the claim that the proportion of defects for cd burners is 0.3. a sample of 200 randomly selected

  Portable enterprises produces two lines of mobile

portable enterprises produces two lines of mobile homesdouble-wide and single-wide. unit cost and revenue data

  Briefly describe the hosted software model for enterprise

Briefly describe the hosted software model for enterprise software and discuss its primary appeal for SME.

  Jordan who is paid monthly is single and claims 0

jordan who is paid monthly is single and claims 0 deductions. he earns 100000 per year as a manager at a firm.

  Accumulated benefit obligation measures

The pension obligation on the basis of the plan formua applied to years of service to date and based on existing salary levels.

  Forty semiannual payments of 9780 each with the first

ellison inc. a manufacturer of steel school lockers plans to purchase a new punch press for use in its manufacturing

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd