Question

Exercise 4-15A Calculate net cash flows (LO4-7) Below are several transactions for Meyers Corporation for 2021. Issue common stock for cash, $40,000. Purchase building and land with cash, $25,000. Provide services to customers on account, $6,000. Pay utilities on building, $500. Collect $4,000 on account from customers. Pay employee salaries, $8,000. Pay dividends to stockholders, $3,000.

Answer 1

Answer:

$12,600

Explanation:

Particulars                                                              Amount

a. Issue common stock for cash                            $40,000

b. Purchase building and land with cash,            -$25,000

c. Provide services to customers on account       $6,000

d. Pay utilities on building                                      -$500

e. Collect $4,000 on account from customers     $4,000

f. Pay employee salaries                                        -$8,000

g. Pay dividends to stockholders                          -$3,900

   Net Cash Flow                                                    $12,600