Exercise
Effect of accruals on the financial statements LO 2-1, 2-2. 2-6 valmont Inc experienced the folowing events in 2014. its first year or operation
1. Received $47.000 cash from the issue of common stock.
2. services on aooount for s7s,ooo.
3, Paid a $4,700 cash dividend to the stockholders
4. Collected s53,000 of the
5.Pald s47,000 cash for other operating expenses Performed services for s17,000
7. Recognized 51,700 of accrued utilities expense at the end of the year. a. & c.
Identify the events that result in revenue or expense recognition and those which attect the statement of cash flows.
In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing actity, IA for investing activty and NAto indicate the element is not affected by the event.
(Enter any decreases to account balances with a minus sign.) Expense Statement of Cash Flows
b. Based on your response to Requirement a, determine the amount of net income reported on the 2014 income statement.
d. Based on your response to Requirement determine the amount of cash flow from operating activites reported on the 2014 statement of cash flows.