The Following Transactions Apply to Springfield Consulting Services in 2012

question 113

Essay

The following transactions apply to Springfield Consulting Services in 2012:
1.issued stock to investors,$40,000
2.borrowed cash from bank,$10,000
3.purchased land for cash,$12,000
4.provided services to customers for cash,$60,000
5.paid $8,000 for rent
6.paid $35,000 for salaries
7.paid $2,000 for supplies used during the year
8.paid $5,000 dividends to owners
9.repaid $4,000 of loan described in item 2
Required:
Prepare a statement of cash flows for 2012.The company started operations on January 1,2012.

---

Definitions:

Negatively Sloped

A term used in economics to describe a line on a graph that moves downwards from left to right, indicating an inverse relationship between two variables.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits to society from trading a good or service.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service versus the total amount they actually pay.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and consumption of goods or services.