Powell Co. borrowed $20,000 from the local bank on April 1, 2013, when the company was started. The note had an 8 percent annual interest rate and a one year term to maturity. Powell Co. recognized $54,000 of revenue on account in 2013 and $65,000 of revenue on account in 2014. Cash collections from accounts receivable were $46,000 in 2013 and $63,000 in 2014. Powell Co. paid $27,000 of salaries expense in 2013 and $36,000 of salaries expense in 2014. Powell Co. paid the loan and interest at the maturity date.
Required:
Based on the preceding information, answer the following questions.
a. What amount of net cash flow from operating activities would Powell report on the 2013 cash flow statement?
b. What amount of interest expense would Powell report on the 2013 income statement?
c. What amount of total liabilities would Powell report on the December 31, 2013, balance sheet?
d. What amount of retained earnings would Powell report on the December 31, 2013, balance sheet?
e. What amount of cash flow from financing activities would Powell report on the 2013 statement of cash flows?
f. What amount of interest expense would Powell report on the 2014 income statement?
g. What amount of cash flows from operating activities would Powell report on the 2014 cash flow statement?
h. What amount of total assets would Powell report on the December 31, 2014, balance sheet?