Brenda Textiles, Inc., reported net income of $120,000 for 2011. The company also reported depreciation expense of

Question:

Brenda Textiles, Inc., reported net income of $120,000 for 2011. The company also reported depreciation expense of $35,000 and a loss of $2,500 on the sale of sewing equipment. The comparative balance sheet shows a decrease in accounts receivable of $5,000 for the year, a $2,500 decrease in accounts payable, and a $1,980 increase in prepaid expenses. Prepare the cash from operating activities section of the statement of cash flows for 2011 using the indirect method.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...