1. Joe Company engaged in the following events during 2010:
Began operations by issuing common stock to investors for $40,000 cash
Provided services to customers on account, $95,000
Collected $72,000 cash from accounts receivable
Paid salaries of $55,000 for the year
Adjusted accounts to reflect estimate that 2 percent of services revenues on account would be
uncollectible.
Determine Joe’s
a. net income for 2010 and
B. net cash flow from operating activities
C. balance in accounts receivable at the end of 2010
D. net realizable value of accounts receivable at the end of 2010
E. total assets as of December 31, 2010
