1. Ramson Company worksheet for the preparation of its 2016 statement of cash flows included the following:
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2016
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|
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December 31
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January 1
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Accumulated depreciation1
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$124,000
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$96,000
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Accounts receivable
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41,650
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44,600
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Allowance for uncollectible accounts
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1,110
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878
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Prepaid rent expense
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12,225
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15,575
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Accounts payable
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37,187
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29,950
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Note #1: Assume that the only transactions affecting the increase in accumulated depreciation for 2016 was the recording of the annual depreciation expense.
Ramson's 2016 net income is $325,500. What amount should Ramson include as net cash provided by operating activities in the statement of cash flows for 2016?
2. Mary wants to make a deposit on 2/1/2015 to be able to withdraw $2,500 at the beginning of each year starting 2/1/2020 for five years. The interest rate is 8 percent.
Required: What is the amount of the deposit that Mary needs to make on 2/1/2015?