incomestatement Dec.31,2007 Jan.1, 2007 Netincome...............................
ID: 2433373 • Letter: I
Question
incomestatement Dec.31,2007 Jan.1, 2007 Netincome.................................................................$385,000 DepreciationExpense.................................................... 125,000 Amortization of Intangibleassets......................................40,000 Gain on Sale of PlantAssets.............................................90,000 Loss on Sale ofInvestments..............................................35,000 Balance sheet AccountsReceivable.......................................................$335,000 $380,000 Inventory......................................................................... 503,000 575,000 prepaidexpenses............................................................. 22,000 10,000 Accounts Payable(to merchandisesuppliers)..................... 379,000 410,000 Accrued Expensespayable............................................... 180,000 155,000 Prepare a partial statement of cash flows for the yearended December 31, 2007, showing the computation of net cashflows from operating activities by the indirect method incomestatement Dec.31,2007 Jan.1, 2007 Netincome.................................................................$385,000 DepreciationExpense.................................................... 125,000 Amortization of Intangibleassets......................................40,000 Gain on Sale of PlantAssets.............................................90,000 Loss on Sale ofInvestments..............................................35,000 Balance sheet AccountsReceivable.......................................................$335,000 $380,000 Inventory......................................................................... 503,000 575,000 prepaidexpenses............................................................. 22,000 10,000 Accounts Payable(to merchandisesuppliers)..................... 379,000 410,000 Accrued Expensespayable............................................... 180,000 155,000 Prepare a partial statement of cash flows for the yearended December 31, 2007, showing the computation of net cashflows from operating activities by the indirect methodExplanation / Answer
Sorry for delay.. I was travelling... CF from Operating activities Net Income $ 385,000 Add : Dep $ 125,000 Add:Amortization $ 40,000 Less: Profit onSale of asset $ (90,000) Add: Loss onsale of Investments $ 35,000 Wrking Capchanges Add : Inx inAcct Payable $ 31,000 Less: Increasein Inventory $ (72,000) Add: Dec inPrepaid Exp $ 12,000 Less: Increasein Acct Rxable $ (45,000) Less : Decreasein Accrued exp $ (25,000) Cash flow fromOp Act $ 396,000
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