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Please answer with any corrections/confirmations of answer on my homework, EXPLAIN WHY: Incredible Transportation began 2016 with accounts receivable, inventory, and prepaid expenses totaling $52,000.
Please answer with any corrections/confirmations of answer on my homework, EXPLAIN WHY:
Incredible Transportation began 2016 with accounts receivable, inventory, and prepaid expenses totaling $52,000. At the end of the year, Incredible had a total of $50,000 for these current assets. At the beginning of 2016, Incredible owed current liabilities of $39,000, and at year-end current liabilities totaled $50,000. Net income for the year was $89,000. Included in net income were a $2,000 loss on the sale of land and depreciation expense of $10,000. Show how incredible should report cash flows from operating activities for 2016. Incredible uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.)Step by Step Solution
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