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ACCT2-103 - Serial Problem Success Systems (Indirect)




Serial Problem Success Systems (Indirect) LO P1, P2, P3;Adria Lopez, owner of Success Systems, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.);SUCCESS SYSTEMS;Income Statement;For Three Months Ended March 31, 2014;Computer services revenue $ 25,207;Net sales 18,293;Total revenue 43,500;Cost of goods sold $ 14,352;Depreciation expense?Office equipment 320;Depreciation expense?Computer equipment 1,220;Wages expense 3,150;Insurance expense 525;Rent expense 1,975;Computer supplies expense 1,265;Advertising expense 560;Mileage expense 320;Repairs expense?Computer 930;Total expenses 24,617;Net income $ 18,883;SUCCESS SYSTEMS;Comparative Balance Sheets;December 31, 2013, and March 31, 2014;2014 2013;Assets;Cash $ 84,987 $ 60,852;Accounts receivable 24,067 5,068;Merchandise inventory 614 0;Computer supplies 2,075 550;Prepaid insurance 1,030 1,605;Prepaid rent 785 785;Office equipment 7,500 7,500;Accumulated depreciation?Office equipment (640 ) (320 );Computer equipment 19,600 19,600;Accumulated depreciation?Computer equipment (2,440 ) (1,220 );Total assets $ 137,578 $ 94,420;Liabilities and Equity;Accounts payable $ 0 $ 1,190;Wages payable 935 570;Unearned computer service revenue 0 1,700;Common stock 114,000 83,000;Retained earnings 22,643 7,960;Total liabilities and equity $ 137,578 $ 94,420;Required;Prepare a statement of cash flows for Success Systems using the indirect method for the three months ended March 31, 2014. Recall that the owner Adria Lopez contributed $31,000 to the business in exchange for additional stock in the first quarter of 2014 and has received $4,200 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)


Paper#76818 | Written in 18-Jul-2015

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