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 |$450,000 |
|Cash disbursements: | | |
| Payment of rent |(60,000) |- 0 - |
| Salaries |(200,000) |(210,000) |
| Travel |(50,000) |(60,000) |
| Utilities | (30,000) | (50,000 |
| Net operating cash flow |$(10,000) |$130,000 |
| | | |

Requirement 2

| | Haskins and Price | |
|