Eleven Co. began operations on Jan. 1, 2022. Eleven starts her business by investing $25,000 of her own money by purchasing 2,500 shares of $1 par value stock, and borrowing $40,000 from the bank. The loan has an interest rate of 6-percent, and she will have to make annual payments each January 1st of the accumulated interest, plus $10,000, until the entire principle is repaid. On April 1, Eleven purchased equipment for $17,250 cash, which she expects to use for five years and expects no salvage value. She also purchased for cash $5,000 in supplies during the year, but only $750 of supplies remaining at year end. Eleven does not offer credit to her customers. For the first year of operations, she had cash revenues of $55,000. Eleven also incurred $27,500 for other operating expenses, for which she still owes $4,750. Operating Cash Flows Investing Cash Flows Financing Cash Flows gnoring taxes, determine (i) Cash from Operations, (ii) Cash from Investing, and (i) Cash 35,900 from Financing for the year. Be sure to show your work. (17,250) 80.000

Eleven Co. began operations on Jan. 1, 2022. Eleven starts her business by investing $25,000 of her own money by purchasing 2,500 shares of $1 par value stock, and borrowing $40,000 from the bank. The loan has an interest rate of 6-percent, and she will have to make annual payments each January 1st of the accumulated interest, plus $10,000, until the entire principle is repaid. On April 1, Eleven purchased equipment for $17,250 cash, which she expects to use for five years and expects no salvage value. She also purchased for cash $5,000 in supplies during the year, but only $750 of supplies remaining at year end. Eleven does not offer credit to her customers. For the first year of operations, she had cash revenues of $55,000. Eleven also incurred $27,500 for other operating expenses, for which she still owes $4,750. Operating Cash Flows Investing Cash Flows Financing Cash Flows gnoring taxes, determine (i) Cash from Operations, (ii) Cash from Investing, and (i) Cash 35,900 from Financing for the year. Be sure to show your work. (17,250) 80.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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