Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Design Homes Ltd had a $72,800 net loss for 2020. A dividend of $24,100 was paid during the year and depreciation expense was $22,900. An
Design Homes Ltd had a $72,800 net loss for 2020. A dividend of $24,100 was paid during the year and depreciation expense was $22,900. An inspection of the statement of financial position showed the following working capital accounts: 1 January 2020 31 December 2020 $ $ Cash 34,200 25,000 Accounts receivable 67,200 72,600 Inventory 56,300 71,100 Prepayments 7,600 7,700 Accounts payable 61,000 51,500 Accrued expenses 7,900 8,000 Required: Calculate whether Design Homes Ltd generated any cash from its operations during 2020. Important: For any amounts, please don't include the dollar sign ($) or any thousands separators - i.e., $12,000 should be written as 12000. For operating loss, negative cash flows, and amounts that should be subtracted from operating loss, please include the - (minus) sign in front of the amounts. Please don't place the amounts in parentheses. rui operating loss, negauve casi lows, anu amounts liial Smouiu pe suvu acteu ITON operating loss, please include the - (minus) sign in front of the amounts. Please don't place the amounts in parentheses. Operating loss Depreciation Increase/decrease in accounts receivable Increase/decrease in inventory Increase/decrease in prepayments Increase/decrease in accounts payable Increase/decrease in accrued expenses Cash flows from operating activities
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started