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corporate Accounting Question 3 (7 marks) The income statement of Price Ltd for the year ended 31 December 2020, reported the following condensed information: Revenue
corporate Accounting
Question 3 (7 marks) The income statement of Price Ltd for the year ended 31 December 2020, reported the following condensed information: Revenue from fees $600,000 Operating expenses 360,000 Income from operations 240,000 Income tax expense 60,000 Net income $180,000 Price's balance sheet contained the following comparative data at December 31: 2020 Accounts receivable $50,000 Accounts payable 35,000 Income taxes payable 6,000 2019 $45,000 41,000 3,000 Price has no depreciable assets. Accounts payable pertains to operating expenses. Required: (a) Calculate: i Cash receipts from customers. (1 mark) il cash payments for operating expenses. (1 mark) (b) Prepare the operating activities section of the statement of cash flows for 2020 Step by Step Solution
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