Business, 12.06.2020 16:57 23rwilliamson

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy. Year 1 Year 2

a. Amounts billed to clients for services rendered $ 178,000 $ 228,000

b. Cash collected from clients 156,000 186,000

c. Cash disbursements:

Salaries paid to employees for services rendered during the year 86,000 96,000

d. Utilities 28,000 36,000

e. Purchase of insurance policy 58,800 0

In addition, you learn that the firm incurred utility costs of $33,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.

Required:

1. Calculate the net operating cash flow for years 1 and 2. (Net cash outflows should be indicated by a minus sign.)2. Prepare an income statement for each year according to the accrual accounting model.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 22:30

An annuity that goes on indefinitely is called a perpetuity. the payments of a perpetuity constitute a/an series. the equation is: a stock with no maturity is an example of a perpetuity. quantitative problem: you own a security that provides an annual dividend of $170 forever. the security’s annual return is 9%. what is the present value of this security? round your answer to the nearest cent. $

Answers: 2

Answer

Business, 22.06.2019 02:00

Southeastern bell stocks a certain switch connector at its central warehouse for supplying field service offices. the yearly demand for these connectors is 15,000 units. southeastern estimates its annual holding cost for this item to be $25 per unit. the cost to place and process an order from the supplier is $75. the company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days.a) find the economic order quantity.b) find the annual holding costs.c) find the annual ordering costs.d) what is the reorder point?

Answers: 2

Answer

Business, 22.06.2019 09:40

Microsoft's stock price peaked at 6118% of its ipo price more than 13 years after the ipo suppose that $10,000 invested in microsoft at its ipo price had been worth $600,000 (6000% of the ipo price) after exactly 13 years. what interest rate, compounded annually, does this represent? (round your answer to two decimal places.)

Answers: 1

Answer

Business, 23.06.2019 00:50

Mr. drucker uses a periodic review system to manage the inventory in his dry goods store. he likes to maintain 15 sacks of sugar on his shelves based on the annual demand figure of 225 sacks. it costs $2 to place an order for sugar and costs $1 to hold a sack in inventory for a year. mr. drucker checks inventory one day and notes that he is down to 9 sacks; how much should he order?

Answers: 1

Answer

You know the right answer?

Listed below are several transactions that took place during the first two years of operations for t...

Questions