Bixby Co. went into business on October 1, 2020 and had the following transactions: Oct. 1 - Issued stock to stockholders for $4,000. • Oct. 1 - Borrowed $12,000 from the bank. No payments will be made until $14,000 is paid on Oct. 1, 2022. Oct. 1 - Purchased six months of insurance for $600 cash. • Oct. 1 - Bought equipment for $8,000 cash. Expect it to last for four years with no salvage value. Nov. 6 - Purchased inventory for $9,000 on account. • Nov. 15 - Bought land for $5,000 cash. During Nov. - $4,000 of inventory was sold for $7,000 in cash. Dec. 3 - Paid $5,000 of accounts payable. Dec. 14 - Sold one half of land for $3,000 cash. • Dec. 28 - Received utility bill for $2,000 for November & December. This will be paid in January. During Dec. - $3,000 of inventory was sold for $5,000 on account. What were Bixby's net operating cash flows for the three months ended December 31, 2020? O ($5,600) $7,000 O $12,000 O $1,500

Bixby Co. went into business on October 1, 2020 and had the following transactions: Oct. 1 - Issued stock to stockholders for $4,000. • Oct. 1 - Borrowed $12,000 from the bank. No payments will be made until $14,000 is paid on Oct. 1, 2022. Oct. 1 - Purchased six months of insurance for $600 cash. • Oct. 1 - Bought equipment for $8,000 cash. Expect it to last for four years with no salvage value. Nov. 6 - Purchased inventory for $9,000 on account. • Nov. 15 - Bought land for $5,000 cash. During Nov. - $4,000 of inventory was sold for $7,000 in cash. Dec. 3 - Paid $5,000 of accounts payable. Dec. 14 - Sold one half of land for $3,000 cash. • Dec. 28 - Received utility bill for $2,000 for November & December. This will be paid in January. During Dec. - $3,000 of inventory was sold for $5,000 on account. What were Bixby's net operating cash flows for the three months ended December 31, 2020? O ($5,600) $7,000 O $12,000 O $1,500

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9PA: Mohammed LLC is a growing consulting firm. The following transactions take place during the current...

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