Determine the amount of net income for October, assuming that dividends of $2,000 were paid. 1 answer below »

Woods Interiors uses the cash basis of accounting. Financial information related to Woods Interiors for September and October of 2004 is as follows:

 

September 30, 2004

October 31, 2004

Notes payable

$10,000

$15,000

Land

17,000

25,000

Capital stock

6,000

9,000

Retained earnings

?

?

Cash

18,000

27,000

a. Prepare balance sheets for Woods Interiors as of September 30 and as of October 31, 2004.

b. Determine the amount of net income for October, assuming that dividends of $2,000 were paid.

c. Determine the net cash flows from operating activities.

d. Determine the net cash flows from investing activities.

e. Determine the net cash flows for financing activities.

f. Determine the net increase or decrease in cash.

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