Question
1. Atlantic Inc. had the following noncash current asset and current liabilities balances at the end of 2010 and 2011: 2010 2011 Accounts receivable $
1. Atlantic Inc. had the following noncash current asset and current liabilities balances at the end of 2010 and 2011:
|
| 2010 |
| 2011 |
| Accounts receivable | $ 50,000 |
| $ 42,000 |
| Inventory | 190,000 |
| 160,000 |
| Prepaid insurance | 10,000 |
| 6,000 |
| Accounts payable | 25,000 |
| 30,000 |
Net income for 2011 was $940,000 and depreciation expense was $25,000. All sales and all purchases are on account. Atlantic uses the indirect method for preparing the statement of cash flows.
1. Atlantic Inc. had the following noncash current asset and current liabilities balances at the end of 2010 and 2011:
|
| 2010 |
| 2011 |
| Accounts receivable | $ 50,000 |
| $ 42,000 |
| Inventory | 190,000 |
| 160,000 |
| Prepaid insurance | 10,000 |
| 6,000 |
| Accounts payable | 25,000 |
| 30,000 |
Net income for 2011 was $940,000 and depreciation expense was $25,000. All sales and all purchases are on account. Atlantic uses the indirect method for preparing the statement of cash flows.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
