Alternate Exercises and Problems 1–1
Chapter 1 Environment and Theoretical Structure of
Financial Accounting
EXERCISES
Exercise 1-1
Requirement 1
Haskins and Price
Operating Cash Flow
Year 1
Year 2
Cash collected
$330,000
$450,000
Cash disbursements:
Payment of rent
(60,000)
– 0 –
Salaries
Travel
(50,000)
(60,000)
Utilities
Net operating cash flow
$130,000
Requirement 2
Haskins and Price
Income Statements
Year 1
Year 2
Revenues
$380,000
$440,000
Expenses:
Salaries
(200,000)
(210,000)
Travel
(50,000)
(60,000)
Rent
Net Income
$100,000
1–2 Intermediate Accounting, 8/e
Requirement 3
Year 1: Amounts billed to customers $380,000
Year 2: Beginning accounts receivable $ 50,000
Exercise 1-2
List A List B
g 1. predictive value a. applying the same accounting practices
over time
Alternate Exercises and Problems 1–3
Exercise 1-3
1. Periodicity
Exercise 1-4
1. Periodicity