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Joe Jackson opened Jackson’s Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books: Jackson invested $25,000 cash in the business in exchange for common stock. Jackson contributed $100,000 of equipment to the business. The company paid $2,000 cash to rent office space for the month of March. The company received $16,000 cash for repair services provided during March. The company paid $6,200 for salaries for the month of March. The company provided $3,000 of services to customers on account. The company paid cash of $500 for utilities for the month of March. The company received $3,100 cash in advance from a customer for repair services to be provided in April. The company paid Jackson $5,000 cash as a dividend. Based on this information, net income for March would be:

A company that has days’ sales uncollected of 30 days and days’ sales in inventory of 18 days implies that inventory will be converted to cash in about 12 days.

A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total interest due on the maturity date is: (Use 360 days a year.)

A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:

Financial reporting refers to:

Business activities that generate or use cash are classified as operating, investing, or financing activities on the statement of cash flows.

An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.

When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except:

In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available:           Net income for the year was $ 52,000   Accounts payable decreased by   18,000   Accounts receivable increased by   25,000   Inventories increased by   5,000   Cash dividends paid were   14,000   Depreciation expense was   20,000   Net cash provided by operating activities was:

Return on assets is often stated in ratio form as the amount of average total assets divided by income.