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Indirect Statement of Cash flows Question Partial List of Accounts (use only this information) Accounts Receivable Salaries Payable Ending Balance 16,000 8,000 Beginning Balance 27,000 15,000 Other Information: Net Income 49,000 Sales 150,000 Salary Expense 20,000 Depreciation Expense 20,000 What is the second number in the cash flows from operating activities (indirect method)? Second Number => Number = 8 or 9 Number = 0 or 1 Number = 6 or 7 Number = 4 or 5 Number = 2 or 3 Partial List of Accounts A/P = 50,000 A/R = 600,000 Accumulated Depreciation = 45,000 Unearned Revenue = 33,000 Cost of Goods Sold = 9,000,000 Gain on Equipment (Sale) = 13,000 Interest Expense = 87,000 Inventory = 60,000 Loss on Equipment = 70,000 Property, Plant, & Equipment = 300,000 Sales = 11,555,000 Utilities Expense = 95,000 What will be the second number in the amount closed into retained earnings? Will you debit or credit retained earnings (net amount)? Answer => Number = 4, Debit Retained Earnings Number = 6, Debit Retained Earnings Number 6, Credit Retained Earnings Number = 3, Debit Retained Earnings Number = 3, Credit Retained Earnings Equipment Purchase - NPV A not-for-profit corporation has the below facts. What will be the corporation's net present value for the below transaction? Facts: Cost of Capital: 12% Net Cash Inflow (every 6 months): $55,000 Life of the new equipment: 10 Years Cost of New Equipment: $215,550 What is the second number in the net present value of this transaction? NPV => ___? Number => 0 or 1 Number => 8 or 9 Number => 6 or Number => 4 or 5 Number => 2 or 3