1. Ramson Company worksheet for the preparation of its 2016 statement of cash flows included the following:
1. Ramson Company worksheet for the preparation of its 2016 statement of cash flows included the following:
| 2016 | ||
| December 31 | January 1 | |
| Accumulated depreciation1 | $124,000 | $96,000 |
| Accounts receivable | 41,650 | 44,600 |
| Allowance for uncollectible accounts | 1,110 | 878 |
| Prepaid rent expense | 12,225 | 15,575 |
| Accounts payable | 37,187 | 29,950 |
Note #1: Assume that the only transactions affecting the increase in accumulated depreciation for 2016 was the recording of the annual depreciation expense.
Ramson’s 2016 net income is $325,500. What amount should Ramson include as net cash provided by operating activities in the statement of cash flows for 2016?
2. Mary wants to make a deposit on 2/1/2015 to be able to withdraw $2,500 at the beginning of each year starting 2/1/2020 for five years. The interest rate is 8 percent.
Required: What is the amount of the deposit that Mary needs to make on 2/1/2015?
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