Royal Carpet Cleaning provided $90,000 of services during 2011, its first year of operations. All customers paid for the services with major credit cards. Royal submitted the credit card receipts to the credit card company immediately. The credit card company paid Royal cash in the amount of face value less a 3 percent service charge.
On the Balance Sheet: Assets = Liability + Equity
On the Income Statement: Revenue – Expenses = Net Income
Fill in the table and answer questions:
Event: Cash + Accounts Receivable = (?) + Retained Earnings
Event: Revenue (?) – Expenses (?) = Net Income (?)
What is the Statement of Cash Flows for this comapny?
Operating Activity (OA)?, Investing Activity (IA)?, Financing Activity (FA)?, or Not Affected (NA)?
What is the amount of total assets at the end of the accounting period?
What is the amount of revenue reported on the income statement?
What is the amount of cash flow from operating activities reported on the statement of cash flows?