User Account

All Pages

Statements of cash flow different for the two businesses

Assignment Help Accounting Basics
Reference no: EM13933945

The following information is available for two different types of businesses for the 2013 accounting period. Blake Consulting is a service business that provides consulting services to small businesses. University Book Mart is a merchandising business that sells books to college students. 

Data for Blake Consulting: 

1. Borrowed $80,000 from the bank to start the business. 
2. Performed services for clients and collected $60,000 cash. 
3. Paid salary expense of $38,400. 

Data for University Book Mart: 

1. Borrowed $80,000 from the bank to start the business. 
2. Purchased $38,000 of inventory for cash.
3. Inventory costing $33,600 was sold for $60,000 cash. 
4. Paid $4,800 cash for operating expenses. 

Required: 

a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies. 
b. What is different about the income statements of the two businesses? 
c. What is different about the balance sheets of the two businesses? 
d. How are the statements of cash flow different for the two businesses?

Reference no: EM13933945

Questions Cloud

Enter the following headings for the horizontal statements : Enter the following headings for the horizontal statements model onto a blank spreadsheet.
Contractor on a standard-form building contract : "Although not essential, it is common practice when procuring a building to appoint the contractor on a standard-form building contract."(Murdoch J and Hughes W (2008) p101).
What does the us-epa consider to be hazardous waste : Write a 1200-1500 word report on the following: What does the US-EPA consider to be hazardous waste? Are there any discrepancies in the regulations?
Finding a comprehensive treatment program for patients : Finding a comprehensive treatment program for patients suffering from insomnia when traditional psychotherapy and or medications is of no help.
Statements of cash flow different for the two businesses : Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.
The time of the american revolution : Part I: First, put yourself into the time of the American Revolution. What role would you play in the events - for example, a leader, a rebel, a supporter, an artist? You get to decide. How will you respond to the American Revolutionary efforts?
Problem regarding the australian consumer law : In your answers, DO NOT discuss liability under the law of contract or sections 18-29 of the Australian Consumer Law (Cth).
Building a critical skill : Post 1. Review "Building a Critical Skill: Managing Your Time" on page 225. Which of these techniques do you already use? What challenges do you have in managing your time and how do/have you overcome them? What skills have you learned since becoming..
Principles of contract law : Are there any exclusion or limitation clauses? If so identify and explain using the principles of contract law whether the clauses would be valid. When submitting your report please include the brochure.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd