In 2014, Zoe Inc. billed its customers $57,000 for services performed. The company collected $40,600 of the amount billed. Zoe incurred $37,400 of other operating expenses on account. Zoe paid $24,800 of the accounts payable. Zoe acquired $39,000 cash from the issue of common stock. The company invested $13,000 cash in the purchase of land.
Required
(Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: (Enter any decreases to account balances with a minus sign.)
a. What amount of revenue will Zoe report on the 2014 income statement?
Revenue recognized=
b. What amount of cash flow from revenue will Zoe report on the statement of cash flows?
Cash flow from revenue=
c. What is the net income for the period?
Net income=
d. What is the net cash flow from operating activities for the period? (Enter cash outflows as negative amounts.)
Net cash flow from operatine activities=
f. What is the amount of net cash flow from investing activities? (Enter cash outflows as negative amounts.)
Net cash flow from investing activities=
g. What is the amount of net cash flow from financing activities? (Enter cash outflows as negative amounts.)
Net cash flow from financing activities=
h. What amounts of total assets, liabilities, and equity will Zoe report on the year-end balance sheet?
Total assests=
Total liabilities=
Total equity=