accounting queston 1

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

i need help with a small part of this problem. here are the pics of the problem

http://imgur.com/qqpKzW7

http://imgur.com/JVpfZFG

as you can see i just need help with the net cash, and net cash from operating activities from 2011

Feb 19th, 2015

                                                                Pete's Auto services

                                                                                              2010                      2011

                                                                                                 $                            $

Repair service revenue                                                       50,000                  65,000

Less: Uncollectible account expense(1% of revenue)            500                       650 

Net income                                                                          49,500                  64,350

Net cash flow from operating activities                               35,000                  66,000

Balance accounts receivable                                              15,000                  13,650

Net realizable value of accounts receivable                        14,500                 12,850


Working:

 Accounts receivable balance 2010                                  $15,000

 less allowance for doubtful accounts                                      500

 Net realizable value of accounts receivable 2010           $14,500


 Accounts receivable balance 2010                                  $15,000

 Add repair service revenue during 2011                            65,000

 Total                                                                                  $80,000

 Less: Cash collection during 2011                  $66,000

           Accounts Receivable wrote-off                    350      66,350

Balance accounts Receivable 2011                                 $13,650


Allowance for uncollectible accounts expense 2010                          $500

Less: Wrote- off during 2011                                                                 350

                                                                                                             $150

Add: Allowance for uncollectible accounts expense 2011                    650

Ending balance of Allowance for uncollectible accounts expense     $800

Balance Accounts Receivable  2011                                            $13,650

Less Allowance for Uncollectible accounts expense balance            800

Net Realizable Value Of Accounts Receivable 2011                   $12,850


Feb 20th, 2015

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