WGU D102 – Pre-assessment to Study Exam-Solved

Here are some financial statement items for the year for a company. Cash received from customers Cash received from the sale of land Cash paid for dividends Cash paid to employees for wages Cash paid to purchase a new building Cash paid for rent Cash received as new investment from owners Which set of items is a list of items that are used in computing the company's financing cash flow for the year? Cash received from customers, and cash paid to employees for wages. Cash received from customers and cash paid for rent. Cash paid for dividends and cash received as new investment from owners. Cash paid to purchase a new building and cash received from the sale of land. - ANSWER-Cash received from customers and cash paid for rent. A company was started last year when the shareholders invested $70,000 cash into it. At that time, the company also borrowed $100,000 cash from a local bank. The company used $140,000 cash to purchase inventory for $140,000. This year the company sold all of the inventory for $95,000 cash (and that is not a typographical error; the amount received for all of the inventory was only $95,000 cash). Which account balance is correct with respect to this company's balance sheet after the sale of the inventory? Cash is $45,000. Total owners' equity is $115 ,000. Total owners' equity is $25,000. Total owners' equity is $70,000. - ANSWER-Total owners' equity is $25,000. On January 1, a company had these assets, liabilities, and equities: Cash$100 nventory$140 Accounts payable$70 Paid-in capital$150 Retained earnings$20 During the year, the company entered into these transactions: