The following events ware completed by Yang\'s Imperts in Septomber 2014 Sept 1

Question

The following events ware completed by Yang's Imperts in Septomber 2014 Sept 1 Acquired 530 000 cash from the issue of common stock 1Purchased$18,000 of merchandse on acount with terms 2r10, n 30 5 Paid 5400 cash for freight to ebtain merchandse purchased on September 1 8 Sold merchandse that cost S10,00 s customers foe $19,005 on eccount, with lerms 210. 30 Retumed 5750 of defective menchandise from the September 1 purchase to the suppler 10 Paid cash for the balance due on the merchandise parchased on September 1 20 Received cash fem customer of September 8 sal·in selernent of tho account balances, but not within the discount pariad Paid $2.40 cash for seling expenses Requieed a. Recced each event in a statemafes todal lik e the telo ing on* In the Cash Flow cour nus* OAto designate operaing activity, IA for investment activity, FA for inanding actvty, NC for net change in cash and NA to indicate the element is not affected by the evest The fiest event is recorded as an exampl·(Enter any decreases to account balances and cash outflows with a minus sign) Effect of Transactions on Financial Statemeets Using Horizontal Statements Model Balance Sheet Income Statement Staterment of Cash ReverueExpenses Income 0.000 FA 10 920 b. Prepare an income statement for the month ending September 30 YANG'S IMPORTS Income Statement For the Month Ended September 30, 2014 Operating expenses c. Prepare a statement of cash flows for the month ending September 30. (Enter cash outflows as negative amounts YANG'S IMPORTS Statement of Cash Flows For the Month ended September 30, 2014 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash Ending cash balance

Explanation / Answer

Statement Cash A/R inventory A/P CS RE Revenue Expenses net income cash flow 1-Sep 30,000 30,000 30,000 FA 1-Sep 18,000 18,000 NA 5-Sep -400 400 -400OA 9/8-a 19,000 19,000 19,000 19,000 NA 9/8-b -10,000 -10,000 -10,000 -10,000 NA 8-Sep -750 -750 NA 10-Sep -16,905 -345 -17,250 -16,905 OA 20-Sep 19,000 -19,000 19,000OA 30-Sep -2450 -2,450 -2,450 -2,450 -2,450OA total 29,245 0 7305 0 30,000 6550 19000 -12450 6550 29,245 income statement Sales 19,000 less cost of goods sold 10,000 Gross profit 9,000 less selling expense 2,450 Net income 6550 Statement of cash flow Cash flows from operating activities cash from sales 19,000 Cash paid for purchase of goods -17305 cash paid for selling expense -2450 Net cash flow from operating activities -755 Cash flow from investing activities 0 Cash flow from financing activity Cash from issue of common stock 30,000 Net increase In cash 29245 Cash at the beginning 0 Cash at year end 29,245

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