Question
For 2022, its first year in business, Alices Restaurant had net income of $108,000, using the accrual basis of accounting. You represent Haub, Inc., who
For 2022, its first year in business, Alices Restaurant had net income of $108,000, using the accrual basis of accounting. You represent Haub, Inc., who wishes to purchase this business from Alice and wants to determine the appropriate cash amount received by the restaurant from operations in 2022. In reviewing the companys financials, you note the following: 1) the company had accrued receivables for 2022 of $58,000; 2) depreciation expense of $13,000; and 3) the company borrowed $30,000 from a local bank. Alices changes in cash flow using the Indirect Method, what is the amount of Alices cash flows from operations for 2022?
- $148,000
- $33,000
- $63,000
- $93,000
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