IntermediateAccounting------Chapter.docVIP

? The McGraw-Hill Companies, Inc., 2007 1-page \\* arabic6 Intermediate Accounting, 4/e ? The McGraw-Hill Companies, Inc., 2007 Solutions Manual, Vol.1, Chapter 1 1-page \\* arabic7 Exercise 1-1 Requirement 1  Year 2 Year 3RevenuesINR 350,000INR 450,000Expenses: Rent (100,000 ? 2) (50,000)(50,000) Salaries(140,000)(160,000) Travel and entertainment(30,000)(40,000) Advertising (25,000) (20,000)* Net IncomeINR 105,000 INR 180,000 Requirement 2 Amount owed at the end of year one INR 5,000Advertising costs incurred in year two 25,000 30,000 Amount paid in year two (15,000) Liability at the end of year two 15,000 Less cash paid in year three (35,000) Advertising expense in year three INR 20,000* Exercise 1-2 Requirement 1 Jackson and MonroeOperating Cash Flow Year 1 Year 2Cash collected NZD 160,000NZD 190,000Cash disbursements: Salaries(80,000)(85,000) Utilities(30,000)(40,000) Purchase of insurance policy (60,000) - 0 -  Net operating cash flowNZD (10,000)NZD 65,000Requirement 2  Pete, Pete, and Roy Income Statements Year 1 Year 2RevenuesNZD 170,000NZD 220,000Expenses: Salaries(80,000)(85,000) Utilities(35,000)(35,000) Insurance (20,000) (20,000) Net IncomeNZD 35,000NZD 80,000 Requirement 3 Year 1: Amount billed to customers NZD 170,000 Less: Cash collected (160,000) Ending accounts receivable NZD 10,000 Year 2: Beginning accounts receivable NZD 10,000 Plus: Amounts billed to customers 220,000 230,000 Less: Cash collected (190,000) Ending accounts receivable NZD 40,000 Exercise 1-3 Organization Group 1. Securities and Exchange Commission Users 2. Financial Executives International Preparers 3. American Institute of Certified Public Accountants Auditors 4. Institute of Management Accountants Preparers 5. Association of Investment