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A)Guerrero Company occupied in the following events during 2012:
1. Began operations by issuing common stock to investors for $40,000 cash
2. Given services to customers on account, $95,000
3. Collected $72,000 cash from accounts receivable
4. Paid salaries of $55,000 for the year
5. Adjusted accounts to reflect estimate that 2 percent of service revenues on account would be uncollectible
Required:
Verify Guerrero's
a. net income for 2012
b. net cash flow from operating activities
c. balance in accounts receivable at the end of 2012
d. net realizable value of accounts receivable at the end of 2012
e. total assets as of December 31, 2012.
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