Refer to the information in Problem 16-3B. Prepare a statement of cash flows for 2020 using the

Question:

Refer to the information in Problem 16-3B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities.

Other information:

a. All sales are credit sales.

b. All credits to accounts receivable are receipts from customers.

c. All purchases of merchandise are on credit.

d. All debits to accounts payable result from payments for merchandise.

e. Other operating expenses are cash expenses.

f. Income taxes are cash expenses.

Problem 16-3B

Burrow Mining Inc. Comparative Balance Sheet Information Burrow Mining Inc. Income Statement Year Ended December 31, 2020 December 31 Net Sales. 504,000 2020 2019 Change Cost of goods sold.. 336,000 Cash.. $ 28,000 $ 14,560 $ 13,440 Gross profit. 168,000 Cash equivalents . 10,080 5,600 4,480 77,920 Operating expenses.. Depreciation

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...

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