1282018 CengageNOWv2 Online teaching and learming resouroe f

1/28/2018 CengageNOWv2| Online teaching and learming resouroe from Cengage Learning Reconcile Net Income and Net Cash Flows from Operations Terry Mason organized The Fifth Season at the beginning of February 20Y4. During February, The Fifth Season entered into the following transactions: a. Terry Mason invested $15,000 in The Fifth Season in exchange for common stock. b. Pald $2,700 on February 1 for an Insurance premium on a 1-year policy c. Purchased supplies on account, $900. d. Recelved fees of $28,500 during February. e. Paid expenses as follows: wages, $10,800; rent, $3,200; utilities, $1,400; and miscellaneous, $1,600 f. Pald dividends of $4,000. There was $150 of supplies on hand as of February 28. Assume that adjusting entries for usage of supplies and expiration of prepaid insurance were recorded on February 28, 20Y4. Based on the information above, determine the net cash flow from operating activities as of February 28, 20V4.

Solution

Fees earned 28500 Payments: Insurance 2700 Wages 10800 Rent 3200 Utilities 1400 Miscellaneous 1600 19700 Net cash flow from operating activities 8800