Question
JC Company's income statement for Year 2 follows:Sales$900,000 Cost of Goods Sold500,000 Gross Margin400,000 Selling and Administrative expenses328,000 Net Operating Income72,000 Non-operating items: Gain on
JC Company's income statement for Year 2 follows:Sales$900,000 Cost of Goods Sold500,000 Gross Margin400,000 Selling and Administrative expenses328,000 Net Operating Income72,000 Non-operating items: Gain on sale of equipment8,000 Income before taxes80,000 Income taxes24,000 Net income 56000Equipment that had a cost of $40,000 and on which there was accumulated depreciation of $30,000 was sold during Year 2 for $18,000. The company declared and paid in cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.1. Compute cash received from customers2, Depreciation, P42,000( dedute or add)3, Increase in accounts receivable, P80,000( dedute or add)4. Increase in inventory, P50,000( dedute or add)5, Decrease in prepaid expenses, P 7,000(dedute or add)6, Increase in accounts payable, P 60,000(dedute or add)7. Decrease in accrued liabilities, P10,000(dedute or add)8. Increase in income taxes payable, P3,000(dedute or add)9. Gain on sale of equipment, P8,000(dedute or add)10, Total adjustments to net income to reconcile to net cash flow from operating activities11, Net cash flow from operating activities12, Net cash flow from investing activities13, Net cash flows from financing activities14, Net increase (decrease) in cash and cash equivalents15, Cash paid for merchandise
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