Prepare a direct method cash flow statement for the month

Reference no: EM131975554

Problem

After several months of planning, Denise Murphy started a structural lab-test business for the civil engineering and construction industries called BreakToMeasure. The following events occurred during its first month:

On May 1, Murphy started the firm, investing $3,000 cash and $15,000 of equipment.

On May 2, BreakToMeasure paid $600 cash for furniture for the shop.

On May 3, BreakToMeasure paid $500 cash to rent space in a strip mall for May.

On May 4, it obtained $1,200 of equipment for the shop and received an invoice for this purchase.

On May 5, BreakToMeasure opened for business. Cash received from services provided in the first week and a half of business (ended May 15) is $825.

On May 15, it provided $100 of lab-test services on account (IE: it issued the customer an invoice).

On May 17, it received a $100 check for services previously rendered on account.

On May 17, it paid $125 cash to an assistant for working during the grand opening.

Cash received from services provided during the second half of May is $930.

On May 31, it paid a $400 on the invoice it received on May 4.

On May 31, it paid $900 cash dividends to Murphy.

1. Prepare an Income Statement for the month of May.
2. Prepare a direct method Cash Flow Statement for the month.
3. Prepare an Owners Equity Statement for the month.

Reference no: EM131975554

Questions Cloud

Find the after-tax cash flow from the sale of equipment : Your firm purchased machinery for $10 million 3 years ago. It has been depreciated straight-line over an assumed 5 year life, but it can now be sold.

Prepare closing entries and statement of cash flow : Prepare closing entries and statement of cash flow. Prepare income statement. Prepare statement of retained earnings.

Should the firm buy and install the machine press : The shop's tax rate is 30 percent and its discount rate is 8 percent. Should the firm buy and install the machine press? Why or why not?

What should be the value of the stock per share : A firm just paid a $0.286 dividend per share, which grew from a $0.137 dividend per share five years ago. This dividend growth is expected to continue.

Prepare a direct method cash flow statement for the month : Prepare a direct method Cash Flow Statement for the month. Prepare an Income Statement for the month of May.

How many shares or stock will be outstanding : A firm has a market value equal book value excess of $800, other assets or ss.200. and equry of $6.000.The firm has 600 shares of stock outstanding.

Corresponding market values and durations : Consider the following bonds with their corresponding market values and durations:

What is the firm operating cash flow : A firm has net sales of $25,000, costs of goods sold of $10,000, selling, general and administrative expenses of $8000 (of which $2000 are depreciation expense)

What bonds payable amount will serotta report : Record the issuance of the bonds on January 1. What bonds payable amount will Serotta report on this year's December 31 balance sheet?

User Account

All Pages