Purchase Solution

XYZ Corporation and Simple Cash Flow Statement

Not what you're looking for?

Ask Custom Question

Construct a simple cash flow statement, a balance sheet, and an income statement for XYZ Corporation after 12 months of operations, assuming the following details:
A paid-in capital of $200,000
Monthly revenue of $150,000
Cost of goods at $50,000 per month
Overhead of $60,000 per month
An average A/R of 60 days (2 months)
Average A/P of 30 days (1 month), with a one-time $300,000 investment in plant and equipment financed by a $250,000 12-year promissory note with 10% interest and $50,000 non-interest bearing promissory note payable in 2 years

Purchase this Solution

Solution Summary

This solution is comprised of a detailed explanation to construct a simple cash flow statement, a balance sheet, and an income statement for XYZ Corporation after 12 months of operations.

Solution Preview

Construct a simple cash flow statement, a balance sheet, and an income statement for XYZ Corporation after 12 months of operations, assuming the following details:
A paid-in capital of $200,000
Monthly revenue of $150,000
Cost of goods at $50,000 per month
Overhead of $60,000 per month
An average A/R of 60 days (2 months)
Average A/P of 30 days (1 month), with a one-time $300,000 investment in plant and equipment financed by a $250,000 12-year promissory note with 10% interest and $50,000 non-interest bearing promissory note payable in 2 years

For balance sheet, we have to consider assets, liabilities, and owner's equity. We will input them according to information ...

Purchase this Solution


Free BrainMass Quizzes
Motivation

This tests some key elements of major motivation theories.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Operations Management

This quiz tests a student's knowledge about Operations Management

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.