Use the information provided in each of the followingindependent situations to a

Question

Use the information provided in each of the followingindependent situations to answer the questions. For each situation,briefly explain the reasoning behind each of yourcalculations.

a.      Net cash flow from operations for a period was $30,000;Noncash revenues for the period were $11,000. Noncash expenses forthe period were $13,200. What was net income for theperiod?

b.      Wages expense for a period was $69,000. Wages payableincreased during the period by $10,500. How much cash was paid toemployees during the period?

c.       Cash collected from customers for a fiscal period was$224,500. Sales revenue for the period was $241,000. Accountsreceivable at the beginning of the period was $36,000. What was thebalance in accounts receivable at the end of theperiod?

d.      Net income for a period was $45,000. Current assetsincreased during the period by $7,500. Current liabilitiesincreased during the period by $10,000. How much was cash flow fromoperations for the period?

Explanation / Answer

a Net Cash Flow from operations 30,000.00 Add: Non Cash Revenues 11,000.00 Less: Non Cash Expenses (13,200.00) Net Income for theperiod 27,800.00 b Wage expense for the period 69,600.00 Less increse in Wages Payable (10,500.00) Cash Paid toemployees 59,100.00 c Accounts Receivable at the beginning of the period 36,000.00 Add : Sales Revenue for the period 241,000.00 Less : Cash Received from customers (224,500.00) Accounts Receivable at the end of theperiod 52,500.00 d Net Income for the Period 45,000.00 Increase in Current Liabilities 10,000.00 Increase in current assets (7,500.00) Cash Flow fromOperations 47,500.00

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