The net income for the current year is 600,000. Depreciation recorded on store e
ID: 2464250 • Letter: T
Question
The net income for the current year is 600,000. Depreciation recorded on store equipment for the year amounted 24000.
Net cash flow from operating activities, $626,400
The net income reported on the income statement for the current year was $600,000. Depreciation recorded on store equipment for the year amounted to $24,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of Year
Beginning of Year
Cash
$62,400
$57,600
Accounts receivable (net)
45,600
42,000
Merchandise inventory
60,000
66,000
Prepaid expenses
7,200
5,400
Accounts payable (merchandise creditors)
60,000
54,000
Wages payable
31,800
36,000
a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.
Explanation / Answer
You have not posted what is the question. You have just posted some information i.e. Net income is 600000 and depreciation on store equipment is 24000 out of these information i can just answer assuming that the net income given is before depreciation Net income after depreciation = $600000-$24000 = $576000
Or if you need cash inflow then assuming net income given is after depreciation therefore cash inflow = Net income + non cash expense (depreciation) = 600000+24000 = 624000
Please post the whole question if you need anything else
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