Pancho Company reported net income of $245,000 for 2017 Pancho sold equipment that cost $100,000 and had a book value of $60,000 for $52,000 The comparative balance sheet shows a decrease in accounts receivable of $19,000 for the year, a $13,000 increase in accounts payable, a $4,000 increase in pr...

Loss on sale of equipment Book value Sale price 60000 52000 8000 Dep ...

Pancho Company reported net income of $245,000 for 2017. Pancho sold equipment that cost $100,000 and had

Question:

Pancho Company reported net income of $245,000 for 2017. Pancho sold equipment that cost $100,000 and had a book value of $60,000 for $52,000. The comparative shows a decrease in of $19,000 for the year, a $13,000 increase in accounts payable, a $4,000 increase in prepaid expenses, and a $17, 000 increases in accumulated depreciation.
Instructions
Prepare the operating activities section of the statement of cash flows for 2017. Use 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...