Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mega Screens Inc. reports net sales of $3,200,000, cost of goods sold of $2,000,000, and income tax expense of $150,000 for the year ended

 

Mega Screens Inc. reports net sales of $3,200,000, cost of goods sold of $2,000,000, and income tax expense of $150,000 for the year ended December 31, 2018. Selected balance sheet accounts are as follows: Increase (I) or Decrease (D) $45,000 (D) 55,000 (1) 2017 2018 $150,000 285,000 Cash Accounts receivable Inventory Accounts $195,000 230,000 125,000 120,000 165,000 137,000 40,000 (D) 17,000 (D) payable Income tax payable 25,000 16,000 9,000 (1) Required: a) Calculate cash received from customers, cash paid to suppliers, and cash paid fo income taxes. (6 marks) b) Why might a company's operating profit in a particular period be different from i cash flow from operations? (3 marks) c) Is cash flow more reliable than accounting profit? Which one is more useful? marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

43 a Sales 3200000 Less Increase in Accounts Receivable 55000 3145000 44 45 Cash re... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing a business risk appraoch

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

6th Edition

9780324645095, 324645090, 978-0324375589

More Books

Students also viewed these Accounting questions

Question

=+a. Compute the mean number of lots ordered by a customer.

Answered: 1 week ago

Question

=+b. Calculate the variance and standard deviation of x.

Answered: 1 week ago