Water Girl Corp.\'s 2010 income statement follows: The company also experienced
ID: 2418213 • Letter: W
Question
Water Girl Corp.'s 2010 income statement follows:
The company also experienced the following during 2010:
Calculate the company's net cash provided or used by operating activities using the direct method.
a. None of the answers
b. Provided 77,000
c. Used 77,000
d. Used 68,000
Water Girl Corp Income Statement For Year Ended December 31, 2010 Sales Cost of goods sold Gross profit Operating expenses $248,000 $132,000 Wages and salaries expense Rent expense Depreciation expense Amortization expense Other expenses $44,000 16,000 30,000 12.000 Income from operations Gain on sale of equipment Income before taxes Income tax expense Net Income 18.000120.000 12,000 26.000 $ 38,000 3.300 S 24.700Explanation / Answer
a. none of these answers
Water Girl's Corporation
Cash flow statement for the year ended december31, 2010
[Direct method]
Particulars Amount($)
Operating receipts in cash:
Cash sales 248000
less: operating payments in cash
wages and salaries expense (44000)
Rent expense (16000)
other expense (18000)
add: increase in accounts payable 16000
increase in tax payable 300
decrease in prepaid expense 10000
decrease in inventory 14000
less: increase in accounts receivable (4000)
Cash generated from operations before tax 206300
less : income tax paid (13300)
net cash from operating activities 193000
* increase in long term notes payable is treated as long term liability . so it is non current liability.
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