In 2013, Ring Company billed its customers $90,000 for services performed. The company subsequently collected $73,000 of the amount billed. Ring incurred $72,000 of operating expenses on account. Ring paid $65,000 of that amount. Ring acquired $30,000 cash from the issue of common stock. The company invested $25,000 cash in the purchase of land.
Required:
Use the preceding information to answer the following questions.
a. What amount of revenue will Ring report on the 2013 income statement?
b. What is the net income for the period?
c. What amount of cash flow from revenue will Ring report on tstatement of cash flows?
d. What is the net cash flow from operating activities for the period?
e. Why is the amount of net income different from the net cash flow from operating activities for the period?
f. What is the amount of net cash flow from investing activities?
g. What is the amount of net cash flow from financing activities?
h. What amount of total equity will Ring report on the year end balance sheet?