Revenue from operations

Hooper co. income statement For the year ended Dec 31, 2018

Revenue from operations 90,000

Total operating income $90,000

Less: Operating expenses 26,000 Salaries 900 Provision for doubtful debts 26,900

Total operating expenses $26,900

Net operating income $63,100

Add: Non-operating income 100

Net income $63,200

Hooper company balance sheet as at Dec 31,2018


Cash 90,000

Notes receivable 20,000

Accounts receivables 12,000 Less: Provision for doubtful debts 900 11,100

Accrued interests 100

Total assets 121,200


Shareholder’s equity Common stock 60,000

Retained earnings Opening Add: Net income 63,200 Less: Dividend 2,000 61,200

Total stakeholders equity 121,200

Total liabilities and stakeholder’s equity 121,200

Hooper co. Cash flow statement for the year ended Dec 31,2018

Cash flow from operating activities

Inflows from customers 78,000 Outflows for expenses (26,000) Net cash-flows from investing activities $52,000

Cash flow from investing activities

Loaned to mosby co. (20,000) Net cash flow from investing activities $20,000

Cash flow from financing activities

Issue of common stock 60,000 Dividend paid (2,000) Net cash flow from financing activities $58,000

Net change in cash 90,000

Beginning cash (Add) Ending cash balance $90,000