Reference no: EM132651877
Preparing Cash Flow Data.
Question 1: Jen Harrison began the second year of her floral business with $12,000 in cash in her bank account. Using the information below, all of which occurred during Year 2, prepare statement of cash flow for Jen. Evaluate her cash management strategy during Year 2.
1. Sold an equity interest in the business for $13,000 cash.
2. Generated revenue from floral sales of $20,000, collecting all but $5,000.
3. Incurred operating expenses totaling $9,000, of which $2,000 remained unpaid at the end of Year 2.
4. Purchased new store equipment for $5,000, with a down payment of $2,500 cash and signing a note payable for $2,500.
5. Paid shareholders a cash dividend of $2,800.
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