Question
The following Income Statement and Operating Cash Flow information pertain to Receivership Inc.'s operations for the year ended December 31, 2014. Prepare the net cash
The following Income Statement and Operating Cash Flow information pertain to Receivership Inc.'s operations for the year ended December 31, 2014. Prepare the net cash flow from operating activities section of the cash flow statement using the direct method.
Income statement for the year ended December 31, 2014
Revenues1,328
COGS587
Rent expenses152
Wages expenses136
Insurance expenses53
Other SG&A (includes depreciation expenses)198
Interest expenses30
Gain on sale of asset(5)
1,151
Income before tax177
Tax62
Net income115
Cash flow provided by operating activities (indirect method), for the year ended December31, 2014
Net income 115
Depreciation32
Gain on sale of asset(5)
142
Increases/decreases in A/R26
Inventories(35)
Prepaid rent13
A/P28
Wages payable(20)
Tax payable5
Interest payable(2)
Advances from customers(3)
Other accrued SG&A5
17
Net cash provided by operating activities159
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Core Macroeconomics
Authors: Eric Chiang
3rd edition
978-1429278478, 1429278471, 978-1429278492, 1429278498, 1464191433, 978-1464191435
