value: 5.00 points Dive In Company was started several years ago by two diving i
ID: 2594144 • Letter: V
Question
value: 5.00 points Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement are presente d below Current Previous Year ear Balance Sheet at December 31 Cash Accounts Receivable Prepaid Expenses $4,180 $5,015 850 85 1,700 170 $ 6,050$5,950 Salaries and Wages Payable 700 $1,800 1,350 3,450 2,800 1,900 Common Stock Retained Earnings $ 6,050$5,950 Income Statement Service Revenue Salaries and Wages Expense Other Operating Expenses $41,650 37,000 4,000 Net Income $ 650 Additional Data a. Prepaid Expenses relate to rent paid in advance b. Other Operating Expenses were paid in cash. c. An owner contributed capital by paying $550 cash in exchange for the company's stock.Explanation / Answer
DIVE IN COMPANY
Statement of cash flows
For the year ended December 31
Cash flows from opertaing activities: Amount ($) Amount ($) Net Income 650 Adjustments to reconcile Net income to Net Cash provided by operating activities: Decrease in salaries and wages payable (1,800- 700) (1,100) Increase in accounts receivables (1,700 - 850) (850) Increase in prepaid expenses (170 - 85) (85) (2,035) Net Cash used by operating activities (1,385) Cash flows provided (used) in investing activities: 0 Cash flows from financing activities: Proceeds form issue of stock 550 550 Net cash flows from financing activities 550 Net Increase (Decrease) in cash (835) Add: Cash balance at the beginning 5,015 Cash balance at the end 4,180 *---------------------------------*------------------------------------*Related Questions
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