Reference no: EM132827509

Question 1 - A company sells: Terms of Sale $24,000 in January $25,600 in February $24,800 in March $26,100 in April.

Company Terms of Sale are: 35% cash, 40% net 30, and 25% net 60. What are the monthly cash inflows for the months of January thru June, by month?

Question 2 - Income Statement and Balance Sheet

Indicate which of the following transactions would appear on the company's Income Statement (IS) or Balance Sheet (BS), or both.

1. Paid $24,000 in interest on the company's long-term debt.

2. Signed a contract to sell $156,000 worth of services.

3. Bought a new piece of equipment to be used in production of cookies for $1,340,000.00.

4. Bought a tablet for $350 to be used at an expo at which the company will be presenting some of its goods.

5. Paid $38,000 towards the principal on its long-term debt.

6. Bought $260,000 worth of raw material inventory.

7. Used $140,000 worth of raw materials and packaging for goods that the company sold.

Sold $1,000,000 worth of product, 20% for cash and 80% to be paid within 30 days.