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

$12,600

Step-by-step 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