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    Statement of Cash Flows and Balance Sheet

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    Construct the cash from operating activities section of the SCF. See attached file for full problem description.

    The Bogue Street Hotel's current account balances at the beginning and end of the year were as follow:
    Current Assets Beg. End Current Liabilities Beg. End
    Cash $10,000 $15,000 Accounts payable $52,000 $60,000
    Accounts receivable 100000 90000 Wages payable 10500 12000
    Food inventory 20000 25000 Interest payable 9000 7500
    Prepaid expenses 5000 6000 Taxes payable 5400 7500
    Total $135,000 $136,000 Total $76,900 $87,000

    In addition, the hotel had total revenue of $3500800, expenses of $2900400, and depreciation of $75200 during the year.

    REQUIRE
    Construct the cash from operating activities section of the SCF.
    Statement of Cash Flows
    For the month of December 31, 2002
    Cash flows from operating activities
    Collection from guests $100,000
    Payments for salaries -35000
    Payments for other expenses -48000
    Net cash provided by operating activities $17,000
    Cash flows from investing activities
    Sale of equipment $3,500
    Purchase of investments -24000
    Net cash used by investing activities -20500
    Cash flows from financing activities
    Issue of long-term notes $10,000
    Owner withdrawals -8000
    Net cash from financing activities 2000
    Net decrease in cash ($1,500)

    Additional Information
    1. Net income for December 2002 equaled $13500.
    2. Depreciation expense for December 2002 on equipment $5500.
    3. A December 2002 gain on the sale equipment $2000; accumulatee depreciation on equipment sold, $3000.

    REQUIRE
    Based on the above data, prepare the December 31, 2002 balance sheet for Nathan's Motel.

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    https://brainmass.com/business/balance-sheet/statement-cash-flows-balance-sheet-132234

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    The Bogue Street Hotel's current account balances at the beginning and end of the year were as follow:
    Current Assets Beg. End Current Liabilities
    Cash $10,000 $15,000 Accounts payable
    Accounts receivable 100000 90000 Wages payable
    Food inventory 20000 25000 Interest payable
    Prepaid expenses 5000 6000 Taxes payable
    Total $135,000 $136,000 Total

    In addition, the hotel had total revenue of $3500800, expenses of $2900400, and depreciation of $75200 during the year.

    REQUIRE
    Construct the cash from operating activities section of the SCF.

    Statement of cash Flows
    Cash Flow from operating activities
    Net Income 525,200 From the details of revenue, expenses and depreciation
    Add: Depreciation 75,200
    Add: Decrease in ...

    Solution Summary

    The solution has two problems - preparing the operating activity section of statement of cash flows and preparation of balance sheet given the statement of cash flows

    $2.19

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