Financial information related to Thorstad Interiors for June and July of 2007 is as follows:
| |
June 30, 2007 |
July 31, 2007 |
|
Notes payable
|
$30,000
|
$45,000
|
|
Land
|
51,000
|
75,000
|
|
Capital stock
|
18,000
|
27,000
|
|
Retained earnings
|
?
|
?
|
|
Cash
|
54,000
|
81,000
|
a. Prepare balance sheets for Thorstad Interiors as of June 30 and July 31, 2007.
b. Determine the amount of net income for July, assuming that dividends of $6,000 were paid.
c. Determine the net cash flows from operating activities.
d. Determine the net cash flows from investing activities.
e. Determine the net cash flows from financing activities.
f. Determine the net increase or decrease in cash.