Exercise 23-4 Your answer is partially correct. Try again The income statement o
ID: 2569587 • Letter: E
Question
Exercise 23-4 Your answer is partially correct. Try again The income statement of Metlock Company is shown below METLOCK COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,930,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,890,000 4,410,000 6,300,000 1,590,000 4,710,000 Gross profit Operating expenses 2,220,000 Selling expenses Administrative expenses 450,000 1,150,000 $1,070,000 700,000 Net income Additional information: 1. Accounts receivable decreased $370,000 during the year 2. Prepaid expenses increased $160,000 during the year 3. Accounts payable to suppliers of merchandise decreased $290,000 during the year, 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000Explanation / Answer
METLOCK comapny
Statement of cash flows (partial)
For the year ended December 31, 2017
Net Income 1,070,000 ADD : Depreciation 50,000 ADD : Decrease in Accounts Receivable 370,000 LESS : Increase in Prepaid expenses (160,000) LESS : Decrease in Accounts Payable (290,000) LESS : Decrease in Accrued expenses Payable (90,000) Cash flows from Operating activities 950,000Related Questions
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