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In 2013, Zoe Inc. billed its customers $62,000 for services performed. The company collected $51,000 of the amount billed. Zoe incurred $39,000 of other operating expenses on account. Zoe paid $31,000 of the accounts payable. Zoe acquired $40,000 cash from the issue of common stock. The company invested $21,000 cash in the purchase of land.
Required:
Use the preceding information to answer the following questions:
a. What amount of revenue will Zoe report on the 2013 income statement? b. What amount of cash flow from revenue will Zoe report on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? e. Why is the amount of net income different from the net cash flow from operating activities for the period? f. What is the amount of net cash flow from investing activities? g. What is the amount of net cash flow from financing activities? h. What amounts of total assets, liabilities, and equity will Zoe report on the year end balance sheet?
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