Q1) O'hare Company's only asset as of January 1, 2007, was limousine. In 2007, only 3 transactions occurred:
Provided services of $100,000 on account.
Gathered all accounts receivable.
Depreciation on limousine was $15,000
Questions:
1. Create the income statement for O'hare for 2007.
2. Find out the amount of net cash inflow for O'hare for 2007.
3. Describe in one or more sentences why amount of net income on O'hare's income statement doesn't equal amount net cash inflow.
4. If O'hare developed cash flow statement for 2007 by using indirect method, what amount would appear in category titled Cash Flow from Operating Activities?