The income statement for Tremblant Limited is presented here

The income statement for Tremblant Limited is presented here:

Solution

Answers

Working #1

Accounts receivables

A

Beginning balance

$                             52,400.00

B

Service revenue

$                           902,600.00

C

Ending Balance

$                             57,650.00

D=A+B-C

Cash collected from A/R

$                           897,350.00

E

Difference in Unearned revenue

$                               3,820.00

F = D + E

Cash receipt from Customer

$                           901,170.00

Working #2

Income Tax Payable

A

Beginning balance

$                               9,640.00

B

Income tax expense

$                             36,780.00

C

Ending Balance

$                               4,940.00

D=A+B-C

Income tax paid in cash

$                             41,480.00

Working #3

Interest payable

A

Beginning balance

$                               4,860.00

B

Interest expense

$                             74,520.00

C

Ending Balance

$                               6,300.00

D=A+B-C

Interest paid inc cash

$                             73,080.00

Working #4

Salaries payable

A

Beginning balance

$                             20,800.00

B

Ending Balance

$                             19,130.00

C=A - B

Cash paid to employees

$                               1,670.00

Working #5

Cash paid for Operating Expenses

A

Accounts payable, Beginning balance

$                             40,470.00

B

Operating Expense

$                           703,100.00

C

Accounts payable, Ending balance

$                             32,500.00

D=A+B - C

Cash paid for Operating Expenses

$                           711,070.00

E

Prepaid Expense, Beginning Balance

$                             15,670.00

F

Prepaid Expense, Ending Balance

$                             13,330.00

G = F - E

Cash paid for Operating Expenses

$                             (2,340.00)

D + G

Total cash payment for operating expenses

$                           708,730.00

Working no.

Operating Activities

#1

Cash receipts from Customer

$                                               901,170.00

Cash Payments:

#5

For Operating expenses

$   (708,730.00)

#4

To Employees

$        (1,670.00)

#3

For Interest

$      (73,080.00)

#2

For Income tax

$      (41,480.00)

$                                             (824,960.00)

Net Cash provided by Operating activities

$                                                 76,210.00

Working #1	Accounts receivables
A	Beginning balance	$                             52,400.00
B	Service revenue	$                           902,600.00
C	Ending Balance	$                             57,650.00
D=A+B-C	Cash collected from A/R	$                           897,350.00
E	Difference in Unearned revenue	$                               3,820.00
F = D + E	Cash receipt from Customer	$                           901,170.00
Working #2	Income Tax Payable
A	Beginning balance	$                               9,640.00
B	Income tax expense	$                             36,780.00
C	Ending Balance	$                               4,940.00
D=A+B-C	Income tax paid in cash	$                             41,480.00
Working #3	Interest payable
A	Beginning balance	$                               4,860.00
B	Interest expense	$                             74,520.00
C	Ending Balance	$                               6,300.00
D=A+B-C	Interest paid inc cash	$                             73,080.00
Working #4	Salaries payable
A	Beginning balance	$                             20,800.00
B	Ending Balance	$                             19,130.00
C=A - B	Cash paid to employees	$                               1,670.00
Working #5	Cash paid for Operating Expenses
A	Accounts payable, Beginning balance	$                             40,470.00
B	Operating Expense	$                           703,100.00
C	Accounts payable, Ending balance	$                             32,500.00
D=A+B - C	Cash paid for Operating Expenses	$                           711,070.00
E	Prepaid Expense, Beginning Balance	$                             15,670.00
F	Prepaid Expense, Ending Balance	$                             13,330.00
G = F - E	Cash paid for Operating Expenses	$                             (2,340.00)
D + G	Total cash payment for operating expenses	$                           708,730.00