Roney Companys calendar-year 2011 income statement shows the following: Net Income, $364,000; Depreciation Expense, $45,000; Amortization Expense,

Question:

Roney Company’s calendar-year 2011 income statement shows the following: Net Income, $364,000; Depreciation Expense, $45,000; Amortization Expense, $8,200; Gain on Sale of Plant Assets, $7,000. An examination of the company’s current assets and current liabilities reveals the following changes (all from operating activities): decrease, $18,100; Merchandise Inventory decrease, $52,000; Prepaid Expenses increase, $3,700; decrease, $9,200; Other Payables increase, $1,400. Use the indirect method to compute cash flow from operating activities.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... 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...