Using the information below, calculate Cabana Co.’s Net Operating Cash Flow for 2017. It is not necessary to produce a complete Statement of Cash Flows – only Net Operating Cash Flow is required.
2016 2017
Net Income $100,000 $110,000
Accounts Receivable 80,000 90,000
Accounts Payable 15,000 20,000
Prepaid Expenses 5,000 7,000
Inventory 20,000 30,000
Unearned Revenue 5,000 1,000
PP&E 200,000 220,000
Depreciation Expense 20,000 25,000

The law firm of furlan and benson accumulates costs associated with individual cases, using a job order cost system. the following transactions occurred during july: jul. 3 charged 175 hours of professional (lawyer) time to the obsidian co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10 reimbursed travel costs to employees for depositions related to the obsidian case, $12,500. 14 charged 260 hours of professional time for the obsidian trial at a rate of $185 per hour. 18 received invoice from consultants wadsley and harden for $30,000 for expert testimony related to the obsidian trial. 27 applied office overhead at a rate of $62 per professional hour charged to the obsidian case. 31 paid administrative and support salaries of $28,500 for the month. 31 used office supplies for the month, $4,000. 31 paid professional salaries of $74,350 for the month. 31 billed obsidian $172,500 for successful defense of the case. required: a. provide the journal entries for each of these transactions. refer to the chart of accounts for exact wording of account titles. b. how much office overhead is over- or underapplied? c. determine the gross profit on the obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.