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Answer:
Lee Inc.
a. Amount of revenue Lee will report on the Year 1 income statement:
= $62,000
b. Amount of cash flow from revenue to report on the statement of cash flows:
= $51,000
c. The net income for the period:
= $23,000
d. The net cash flow from operating activities for the period:
= $20,000
e. The amount of net cash flow from investing activities:
= ($21,000)
f. The amount of net cash flow from financing activities:
= $40,000
f. Amounts of total assets, liabilities, and equity on the year-end balance sheet:
Total assets = $71,000
Total liabilities = $8,000
Total Equity = $63,000
Explanation:
a) Data and Calculations:
Service Revenue = $62,000
Cash collection from customers $51,000
Outstanding (Accounts Receivable) $11,000 ($62,000 - 51,000)
Operating expense on account = $39,000
Cash paid on account 31,000
Outstanding (Accounts Payable) $8,000
Common Stock $40,000
Land $21,000
b) Cash Account:
Cash collection from customers $51,000
Cash paid on account (31,000)
Common Stock 40,000
Land (21,000)
Cash balance $39,000
c) Income Statement:
Service Revenue $62,000
Expenses (39,000)
Net Income $23,000
d) Assets:
Cash $39,000
Accounts Receivable 11,000
Land 21,000
Total $71,000
e) Liabilities:
Accounts Payable $8,000
Common Stock 40,000
Net Income 23,000
Total $71,000
f) Statement of Cash Flows:
Operating activities:
Cash collection from customers $51,000
Cash paid to suppliers (31,000)
Net cash from operating activities $20,000
Investing activities:
Land ($21,000)
Financing activities:
Common Stock $40,000
The answer to the given question would be as follows:
A] Revenue = 62000,
B] Cash flow from Revenue = 51000,
C] Net Income = 23000 ,
D] Net cash flow from Operating activities = 20000 , E &
E] Net cash flow from Investing activities = -21000
F). Net cash flow from Financing activities = 40000
G] Total assets [tex]= $71,000[/tex]$
Total liabilities [tex]= $8,000[/tex]
Total Equity [tex]= $63,000[/tex]
Find the total assets?
A] Revenue is the total receipts (both cash and accrued) by sale. Here, total billings of $62000 are revenue.
B] Cash flow from revenue is the cash receipts from total sales. Here, the collected bill of $51000 is cash flow from revenue.
C] Net Income for the period is total receipts (both cash and accrued) less total expenses (both cash and accrued).
In this case, net income [tex]= 62000 - 39000[/tex] = $23000
D] Net cash flow from Operating activities denotes cash inflow and outflow due to the business' core operational activities.
In this case, it is cash revenue - cash operating expenses.
Further [tex]= 51000 - 31000 = $20000[/tex]$
E] Net cash flow from Investing activities denotes the cash inflow or outflow due to disposal or acquisition of assets. In this case, its is $-21000 paid for purchasing land
F]. Net cash flow from Financing activities denotes the cash inflow or outflow through the firm's owned or borrowed capital. In this case, it is the issue of common stock $40000.
G). The amount of total assets, liabilities, and equity is as follows:
Total assets [tex]= $71,000[/tex]$
Total liabilities [tex]= $8,000[/tex]
Total Equity [tex]= $63,000[/tex]
To learn more about "Income and Cash Flow," refer brainly.com/question/17143250
