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Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1? a. $7,500; $7,500 b. $22,500; $22,500 c. $7,500; $22,500 d. $0; $22,500 Morris Company collected $36,000 on October 1, Year 2 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Morris Company report related to this contract on its income statement for the year ended December 31, Year 2? How much would it report as cash flows from operating activities for Year 2? a. $9,000; $36,000 b. $12,000; $12,000 c. $9,000; $9,000 d. $0; $36,000 Porter Inc. collected $48,000 on August 1, Year 3 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Porter Inc. report related to this contract on its income statement for the year ended December 31, Year 3? How much would it report as cash flows from operating activities for Year 3? a. $0; $48,000 b. $20,000; $48,000 c. $16,000; $48,000 d. $16,000; $16,000

Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1? a. $7,500; $7,500 b. $22,500; $22,500 c. $7,500; $22,500 d. $0; $22,500 Morris Company collected $36,000 on October 1, Year 2 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Morris Company report related to this contract on its income statement for the year ended December 31, Year 2? How much would it report as cash flows from operating activities for Year 2? a. $9,000; $36,000 b. $12,000; $12,000 c. $9,000; $9,000 d. $0; $36,000 Porter Inc. collected $48,000 on August 1, Year 3 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Porter Inc. report related to this contract on its income statement for the year ended December 31, Year 3? How much would it report as cash flows from operating activities for Year 3? a. $0; $48,000 b. $20,000; $48,000 c. $16,000; $48,000 d. $16,000; $16,000

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.16E
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Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1? a. $7,500; $7,500 b. $22,500; $22,500 c. $7,500; $22,500 d. $0; $22,500 Morris Company collected $36,000 on October 1, Year 2 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Morris Company report related to this contract on its income statement for the year ended December 31, Year 2? How much would it report as cash flows from operating activities for Year 2? a. $9,000; $36,000 b. $12,000; $12,000 c. $9,000; $9,000 d. $0; $36,000 Porter Inc. collected $48,000 on August 1, Year 3 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Porter Inc. report related to this contract on its income statement for the year ended December 31, Year 3? How much would it report as cash flows from operating activities for Year 3? a. $0; $48,000 b. $20,000; $48,000 c. $16,000; $48,000 d. $16,000; $16,000
Transcribed Image Text:Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1? a. $7,500; $7,500 b. $22,500; $22,500 c. $7,500; $22,500 d. $0; $22,500 Morris Company collected $36,000 on October 1, Year 2 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Morris Company report related to this contract on its income statement for the year ended December 31, Year 2? How much would it report as cash flows from operating activities for Year 2? a. $9,000; $36,000 b. $12,000; $12,000 c. $9,000; $9,000 d. $0; $36,000 Porter Inc. collected $48,000 on August 1, Year 3 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Porter Inc. report related to this contract on its income statement for the year ended December 31, Year 3? How much would it report as cash flows from operating activities for Year 3? a. $0; $48,000 b. $20,000; $48,000 c. $16,000; $48,000 d. $16,000; $16,000
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