Answer:
Cordell Inc.
a. Events that result in revenue or expense recognition:
2. Performed services on account for $82,000.
5. Paid $53,000 cash for other operating expenses.
6. Performed services for $19,000 cash.
7. Recognized $3,500 of accrued utilities expense at the end of the year.
b. The amount of net income reported on the 2018 income statement:
$44,500
c. The events that affect the statement of cash flows:
1. Received $40,000 cash from the issue of common stock.
3. Paid a $6,000 cash dividend to the stockholders.
4. Collected $76,000 of the accounts receivable.
5. Paid $53,000 cash for other operating expenses.
6. Performed services for $19,000 cash.
d. The amount of cash flow from operating activities reported on the 2018 statement of cash flows:
$42,000
Explanation:
Data and Calculations:
a) Revenue
Event 2. $82,000
Event 5. (53,000)
Event 6. 19,000
Event 7. (3,500)
b) Net Income $44,500
c) Cash flow from operating activities:
Event 4. Collection from Accounts Receivable $76,000
Event 5. Payment for operating expenses ($53,000)
Event 6. Cash Receipts for services $19,000
d) Net Cash from operating activities $42,000
